The Litecoin (LTC) price opens the year on steadier ground after briefly dipping below recent lows and forcing late sellers out of the market.
However, that trend lower got a fast recovery response from the buyers, and the price has been stable since then. This trend can sometimes be expected in the case of a short-term reset.
With selling pressure easing and structure beginning to shift, traders are now watching whether Litecoin can follow through to the upside.
Top analyst Crypto Patel highlighted this setup on the daily chart, pointing to a clear shift in market structure after price reacted from a well-defined demand zone.
Patel shared that the recent move lower cleared downside liquidity, reducing immediate sell-side pressure and setting the stage for a potential continuation move.
What you'll learn 👉
What the Litecoin Chart Is Showing
On the daily chart, Litecoin is starting to look like it has found its footing again. Price has worked back above levels that were lost in December, and that shift changes the tone of the setup.
The drop into demand did its job without damaging the bigger picture. Instead of rolling over, Litecoin held its structure, pointing to a pullback that cleared pressure rather than the beginning of another leg lower. The LTC Price has since bounced and is attempting to build higher ground.
The liquidity sweep at the current week’s low stands out on the chart. These types of moves often remove late sellers from the market and allow price to move with less resistance.
With that liquidity now taken, downside risk appears more limited in the near term, as long as Litecoin holds above its demand zone.
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Why Traders Are Watching This Setup Closely For LTC
Another important detail is the draw on liquidity sitting above recent highs. Markets tend to move toward areas where liquidity is concentrated, and the Litecoin price still has unfinished business higher up the chart.
This aligns with Patel’s view that the structure favors continuation after the recent pullback, rather than extended consolidation.
The region around the recent lows has been tested and respected. As long as the price continues to react well from the region, the bull thesis continues to be valid. A breach on the other hand would reduce the strength of the scenario, but as yet, the region appears to be defended by the buyers.
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How High Can Litecoin Price Go From Here?
Should Litecoin manage to maintain its position within the demand zone while also indicating bullish reactions on lower time frames, options around the latest highs start becoming relevant again.
A clean move through those levels would likely open the door for a broader push higher, driven by reduced sell-side pressure and improving structure.
That said, this remains a conditional setup. Follow-through depends on price behavior around resistance and overall market conditions.
For now, the Litecoin price has reclaimed control after the liquidity grab, and the chart suggests that buyers have a clear opportunity to press higher if momentum continues to build.
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