Litecoin Price Nears Key Resistance, Can Bulls Break $121?

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The post Litecoin Price Nears Key Resistance, Can Bulls Break $121? appeared first on Coinpedia Fintech News

Litecoin price today is sitting at $120.43, while reflecting a modest 0.42% dip since yesterday. But it is still holding a healthy 13.77% gain on the weekly chart. Talking about which, over the past 7 days, we saw Litecoin gather strength, only to face resistance at $123.99. Despite a solid market cap of $9.2B and an impressive recent rally, momentum has cooled down. This is as technical and fundamental headwinds weigh on LTC’s price action.

Why Litecoin Stumbled?

Within crypto circles, top traders and influencers highlight the main force behind Litecoin’s recent volatility to be regulatory uncertainty. The widely anticipated SEC ruling on Canary Capital’s spot Litecoin ETF was abruptly delayed. This setback removed a major bullish catalyst, with many analysts having placed a 90% probability on ETF approval. 

The delay spooked traders who expected a rapid catalyst-driven rally. Further, this resulted in unwinding of positions and an accelerated downturn. Especially as algorithmic traders kicked in upon the loss of the 61.8% Fibonacci support around $109.67.

LTC Price Analysis:

Litecoin’s failure to break above $123.99 and subsequent drop beneath $121 introduced a short-term bearish structure. The daily RSI has declined to 60.3 after reaching overbought conditions. Current LTC price action shows it gravitating around the $121 pivot zone. The bulls must reclaim and hold this area to neutralize the bears and reignite upside momentum.

That being said, the key supports remain at $110.06 and $103.02. This is with the volume thinning out as traders wait for ETF news. Consequently, LTC’s 24-hour trading volume dipped over 4%, suggesting not just risk-off sentiment, but a broad rotation into Bitcoin as it nears historic highs.

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