Litecoin Consolidation: Bullish Recovery in Sight? – Technical Analysis of February 27, 2025

After reaching a new peak, Litecoin has entered a consolidation phase, hinting at a possible continuation of the trend. Discover Elyfe’s analysis to decipher the technical outlook for LTC.

Litecoin (LTC) Price Situation

After consolidating in an ascending triangle at the support of $55.8, the Litecoin price has sparked buyer interest, propelling its price by about 125%. LTC thus reached $147, validating the breakout of the $116 resistance.

Unfortunately, this level led to a pullback in price, reflecting the emergence of selling pressure. Since then, Litecoin has been oscillating in a range, generally between $82 and $142.

At the time of writing, Litecoin is trading at the upper part of its range, precisely around $131. It is positioned above its 50-day moving average, which coincides with its annual VWAP. Although the short-term trend seems to be turning upwards, the medium-term trend remains neutral. In contrast, the long-term trend remains bullish, as evidenced by the still upward direction of the 200-day moving average.

Unsurprisingly, the bullish momentum of LTC has gradually weakened since its last impulse. This loss of momentum is reflected not only in price movement but also in the oscillators. Nevertheless, a slight rebound is underway, suggesting a timid resumption of movement.

The current technical analysis was conducted in collaboration with Elyfe, investor and educator in the cryptocurrency market.

Focus on Derivatives (LTC/USDT)

In recent weeks, we have observed a simultaneous rise in open interest and the underlying price, signaling growing interest in LTC/USDT perpetual contracts.

However, the recent decline in Litecoin has led to a decrease in open interest, suggesting a gradual liquidation of speculative positions. While this movement may seem concerning, it appears to be reversing, indicating a new recovery in progress. This phenomenon is accompanied by positive funding rates, suggesting that buying pressure remains present on LTC/USDT contracts.

After stabilizing, the CVD has accelerated downwards, indicating a dominance of seller orders in the market. This dynamic reflects an increased aggressiveness of sellers, raising the risk of a continued pullback in the absence of a reversal in buyer flows. Fortunately for the cryptocurrency, this trend seems to be stabilizing, suggesting a slowdown in selling pressure, which could signal a weakening of the bearish movement, or even a possible trend change.

The decline of LTC has led to slight liquidations of buying positions after breaking the support of $120. This movement reflects increased selling pressure, weakening the existing buying momentum.

The heatmap of liquidations for LTC/USDT perpetual contracts reveals that the cryptocurrency has just reached the $130 liquidation zone. It appears to be stabilizing around this level, with no significant orders impacting the price.

Currently, the key liquidation zones are positioned on either side of the current price:

• Above, a first liquidation zone is identified around $136, followed by a much larger zone around $142. Even higher, the $150 zone constitutes a key level.
• Below, the liquidations are less pronounced. A first zone is observed around $120, followed by more subtle liquidations below $110. Finally, a more pronounced zone appears below $100.

These thresholds represent major inflection points for the market. An approach of the price towards these levels could trigger a massive activation of orders, thus playing a key role in upcoming movements, depending on supply and demand dynamics.

Forecasts for Litecoin (LTC) Price

• If Litecoin manages to stay above $106, a recovery could allow it to break the resistance at $140, thus paving the way towards its last peak at $147. Surpassing this threshold could trigger a new expansion, propelling its price towards $170, $210 and beyond if demand intensifies, representing an increase of more than 60%.
• Conversely, if Litecoin fails to maintain the $106 threshold, it could find support around $100. A break of this level would risk triggering a new correction below $90, or even down to $81. This would correspond to a decrease of about 38%.

Conclusion

Litecoin is in a phase of hesitation after a strong rise followed by a pullback. Despite a weakening of momentum, a rebound is underway, hinting at a possible renewed buying interest. The confirmation of a sustainable recovery will depend on the market’s ability to maintain its momentum. Will Litecoin ETFs contribute to this? One thing is sure: it will be crucial to closely monitor the price reaction to strategic levels in order to confirm or adjust current forecasts.

Finally, let us remember that these analyses are based solely on technical criteria, and that cryptocurrency prices can evolve rapidly based on other more fundamental factors.

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