Litecoin Faces Potential Double-Digit Drop After Trendline Brea
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Litecoin (LTC) is showing signs of a bearish trend after breaking below an ascending trendline and failing to hold above its 200-day EMA. Key on-chain metrics, such as increased activity from dormant wallets and a dip in the Network Realized Profit/Loss (NPL) indicator, support a downside outlook. However, a recovery above $71.25 could negate the bearish scenario.
Litecoin’s Technical Breakdown: Signs of Further Downside
Litecoin is at a critical juncture, trading around $66.60 after breaking below a long-standing ascending trendline. This trendline, established by connecting multiple lows since August, was breached over the weekend, suggesting a possible double-digit price decline.
Key Resistance Levels and Downside Potential
After closing below the trendline and failing to regain the 200-day EMA at $70.63, LTC faces immediate resistance around $68. If this level holds, Litecoin could see an 11% decline, potentially testing its August low of $59. The daily RSI further supports this outlook, sitting at 43, below the neutral mark of 50, indicating an increase in bearish momentum.
Two significant on-chain indicators from Santiment back up the bearish technical setup:
Age Consumed Index: The recent spike suggests dormant LTC tokens are moving, often signaling local tops or bottoms. Past upticks have preceded price declines, and the latest surge on Saturday points toward more downside. Network Realized Profit/Loss (NPL): This metric has shown a sharp drop, with the NPL indicator falling from -649,360 to -65.54 million. This decline implies that many LTC holders are realizing losses, likely amplifying selling pressure as investors exit their positions.
Potential Recovery Scenario If Litecoin manages to close above $71.25, it would invalidate the current bearish thesis. In this case, LTC could see a rebound of 7%, testing the October high of $76.19. For now, however, bearish indicators dominate, and traders should remain cautious as LTC approaches key support levels.
Litecoin’s Technical Breakdown: Signs of Further Downside
Litecoin is at a critical juncture, trading around $66.60 after breaking below a long-standing ascending trendline. This trendline, established by connecting multiple lows since August, was breached over the weekend, suggesting a possible double-digit price decline.
Key Resistance Levels and Downside Potential
After closing below the trendline and failing to regain the 200-day EMA at $70.63, LTC faces immediate resistance around $68. If this level holds, Litecoin could see an 11% decline, potentially testing its August low of $59. The daily RSI further supports this outlook, sitting at 43, below the neutral mark of 50, indicating an increase in bearish momentum.
Two significant on-chain indicators from Santiment back up the bearish technical setup:
Age Consumed Index: The recent spike suggests dormant LTC tokens are moving, often signaling local tops or bottoms. Past upticks have preceded price declines, and the latest surge on Saturday points toward more downside. Network Realized Profit/Loss (NPL): This metric has shown a sharp drop, with the NPL indicator falling from -649,360 to -65.54 million. This decline implies that many LTC holders are realizing losses, likely amplifying selling pressure as investors exit their positions.
Potential Recovery Scenario If Litecoin manages to close above $71.25, it would invalidate the current bearish thesis. In this case, LTC could see a rebound of 7%, testing the October high of $76.19. For now, however, bearish indicators dominate, and traders should remain cautious as LTC approaches key support levels.