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Litecoin Price Retreats to $118 Despite Breaking Multi-Year Resistance - LTC Analysis - Blockchain.News

Litecoin Price Retreats to $118 Despite Breaking Multi-Year Resistance - LTC Analysis

Lawrence Jengar Aug 10, 2025 08:04

LTC trades at $118.33 (-5.33% today) after surging past 3-year consolidation. ETF hopes and halving event fuel bullish momentum despite short-term pullback.

Litecoin Price Retreats to $118 Despite Breaking Multi-Year Resistance - LTC Analysis

Quick Take

• LTC currently trading at $118.33 (-5.33% in 24h) • Litecoin's RSI at 60.14 suggests neutral momentum with room for upside • Breaking three-year consolidation pattern signals potential major trend shift • ETF approval speculation and recent halving event driving institutional interest

What's Driving Litecoin Price Today?

The LTC price action over the past week tells a compelling story of renewed institutional interest and technical breakouts. Most significantly, Litecoin shattered a three-year consolidation pattern on August 5th with a dramatic 10.85% surge, marking a pivotal moment for long-term holders who had waited through years of sideways movement.

This breakout coincided with Litecoin outperforming both Bitcoin and Dogecoin, with LTC reaching a five-month high of $121.35. The catalyst appears to be growing optimism around potential U.S. spot ETF approval, which has historically been a major price driver for cryptocurrencies seeking mainstream institutional adoption.

Adding fuel to the bullish narrative, Litecoin's recent halving event reduced miner rewards, creating a supply shock that traditionally leads to upward price pressure. The halving contributed to a 3.62% price increase as investors positioned themselves for potential scarcity-driven gains.

Today's 5.33% pullback appears to be natural profit-taking after such strong momentum, rather than a reversal of the underlying bullish trend that emerged last week.

Litecoin Technical Analysis: Mixed Signals in Bullish Framework

The Litecoin technical analysis reveals a market in transition from bearish to bullish territory. Litecoin's RSI currently sits at 60.14, placing it firmly in neutral territory with room to climb toward overbought levels before signaling a potential reversal.

Litecoin's MACD tells a more encouraging story, with the indicator at 5.2451 above its signal line of 5.1050. The positive MACD histogram of 0.1401 confirms bullish momentum remains intact despite today's pullback. This suggests the recent breakout has fundamental technical support.

The moving average picture strongly favors bulls. LTC price trades above all major moving averages, with Litecoin's SMA 20 at $114.48 providing immediate support. More importantly, Litecoin's SMA 200 sits at $97.94, indicating the long-term trend has definitively shifted bullish.

Litecoin's Bollinger Bands show the coin trading in the upper portion of its range, with a %B position of 0.6694. This suggests continued upward momentum without reaching extreme overbought conditions that typically precede sharp reversals.

Litecoin Price Levels: Key Support and Resistance

Based on Binance spot market data, critical Litecoin support levels emerge at $103.16 for immediate support, aligning closely with the lower Bollinger Band at $103.11. This confluence creates a strong technical floor for any deeper corrections.

The Litecoin strong support at $76.17 represents the absolute must-hold level for maintaining the bullish narrative. A break below this would likely signal a return to the previous three-year consolidation range.

On the upside, LTC resistance remains formidable at $129.16, which coincides with both immediate and strong resistance levels. Breaking this barrier would likely target the 52-week high of $137.04, representing a potential 15% gain from current levels.

The current trading range between $126.35 and $118.25 over the past 24 hours provides short-term guidance, with the LTC/USDT pair needing to reclaim $126 to resume its upward trajectory.

Should You Buy LTC Now? Risk-Reward Analysis

For swing traders, the current LTC price of $118.33 offers an attractive entry point near the middle of the recent range. The risk-reward setup favors bulls, with immediate support at $103.16 providing a clear stop-loss level approximately 13% below current prices.

Conservative investors might wait for a test of Litecoin support levels around $114.48 (the 20-day SMA) before entering, as this would provide better risk management while still capturing the potential breakout continuation.

Aggressive traders could use the current pullback as an opportunity, targeting the $129.16 resistance with a stop below $103.16. This provides a roughly 2:1 risk-reward ratio, which aligns with sound trading principles.

Day traders should focus on the LTC/USDT pair's ability to hold above $118.25, today's low. A break below this level could trigger further selling toward the $114.48 support, while a bounce offers quick profit potential back to $126.35.

Conclusion

Despite today's 5.33% retreat, Litecoin's fundamental technical picture remains bullish following last week's significant breakout from a three-year consolidation pattern. The combination of ETF speculation, halving dynamics, and strong technical indicators suggests the LTC price pullback represents a healthy correction within a larger uptrend. Traders should monitor the $103.16 support level closely, as holding above this level would confirm the bullish thesis for potential moves toward $129.16 resistance in the coming sessions.

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