Geopolitical Tensions Trigger Broader Crypto Sell-Off
Litecoin (LTC) has seen a sharp decline, falling over 4.3% in the past week and more than 14% in the last 30 days, as global risk sentiment deteriorated following escalating conflict between Israel and Iran. The geopolitical clash caused a $150 billion reduction in the total crypto market cap, as investors moved away from volatile assets.
Price Recovery Stalls at Key Resistance
After briefly rebounding from recent lows, LTC’s recovery attempt stalled at $97.80, a level aligned with the 23.6% Fibonacci retracement. Despite touching highs above $86 during Friday’s spike in trading volume, Litecoin failed to hold momentum, retreating to close near $85.79.
This suggests a potential consolidation phase, as the asset struggles to generate strong upward traction.
Technical Indicators Show Limited Momentum
Momentum indicators point to a lack of bullish conviction:
- The Relative Strength Index (RSI) remains below 50 at 43.46, signaling weak buying pressure.
- The MACD histogram is flat, showing a lack of directional bias.
- Trading volume declined by 42% following the initial plunge, highlighting reduced market participation.
These metrics indicate that Litecoin may continue to trade sideways unless fresh catalysts emerge.
ETF Optimism Offers Long-Term Hope
Amid short-term technical weakness, investor interest is building around a potential spot Litecoin ETF. Speculation suggests high chances of regulatory approval, with optimism growing among analysts that this could unlock broader institutional access to LTC.
While ETF prospects provide a longer-term bullish narrative, they have yet to materially impact current price dynamics. Sentiment remains cautious, with traders watching for a clear breakout above $97.80 to confirm a trend reversal.
Market Outlook: Neutral to Bearish
Litecoin’s near-term trend remains neutral to slightly bearish, unless it can reclaim $97.80 resistance with strong volume and momentum. Until then, support near $85 is likely to be tested, and traders may remain on the sidelines amid global uncertainty.