Technical analysis reveals concerning patterns for Litecoin price movement, suggesting that LTC holders might need to brace for potential downside ahead. The cryptocurrency has been testing a critical support level that has held firm for the past three months, but signs of weakness are becoming increasingly apparent.
The daily chart reveals a clear descending trendline that has been forming over recent months, painting a picture of consistent selling pressure. The analysis indicates that buyers are struggling to maintain control, with each attempted rally being met with stronger selling force, resulting in a series of lower highs.
What makes the current situation particularly precarious is the behavior around the three-month support level. The price floor has been crucial in preventing further decline, but recent price action suggests this support is starting to crack.
The repeated tests of this level have likely weakened its strength, potentially setting the stage for a significant move lower.
LTC Potential Downside Target
Should the support level give way, Thompson’s technical analysis projects a concerning scenario for Litecoin holders. The next significant support zone lies approximately 24-25% below current prices. This projection isn’t merely speculative – it’s based on established technical patterns and previous market behavior.
Until Litecoin can decisively break above the descending trendline that has defined its recent price action, the path of least resistance appears to be downward. While short-term bounces remain possible, they’re likely to face significant resistance at the trendline, potentially reinforcing the overall bearish structure.
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A confirmed breakdown below the three-month support could trigger accelerated selling pressure. The market currently remains under bearish control, with multiple technical indicators aligning to suggest further downside potential.
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