Litecoin Experiences Over 4% Drop Amid Broader Market Turmoil
Over the past week, Litecoin (LTC) has faced a significant decline of more than 4.3%, extending its losses to over 14% in the last 30 days. This recent sell-off is part of a wider downturn affecting risk assets globally, driven by geopolitical tensions and market uncertainty.
The catalyst for this sharp decline came after Israel launched an attack on Iran aimed at disrupting its nuclear program and missile capabilities. Iran responded with missile strikes, intensifying fears across financial markets. This conflict has rattled investors worldwide, leading to a dramatic reduction of over $150 billion in the total cryptocurrency market capitalization.
Despite the turbulence, Litecoin has shown signs of a fragile recovery. It briefly climbed back above $86, but gains have been limited by technical resistance levels. Key resistance is at around $97.80—matching the 23.6% Fibonacci retracement level identified through technical analysis. Momentum indicators such as the RSI, currently at 43.46, and a flat MACD histogram suggest limited buying energy, favoring a consolidation phase.
Trading volume also paints a picture of cautious traders. Litecoin’s activity dropped by 42% following the initial decline, although it temporarily surged past the $85.90 resistance during a high-volume spike late Friday. However, profit-taking quickly pulled the price back down to around $85, underscoring the market’s hesitance.
Looking ahead, hope remains for a spot Litecoin ETF approval, which could provide a bullish catalyst. Notably, Bloomberg ETF analysts estimate a 90% chance of regulatory approval, fueling optimism among investors.
Stay tuned for more updates on Litecoin and the evolving crypto market amidst geopolitical developments.
