Litecoin Investors Should Pay Attention to These Prices Before Buying
Litecoin is currently at a crucial support level after a strong rejection from the 200-day EMA.
Any drop below key support levels could see it incur further losses before a positive recovery is possible.
Litecoin (LTC) has recently faced strong selling pressure after being decisively rejected from the 200-day EMA resistance. The altcoin has returned to a key support zone, while attempting a recovery and potentially retesting higher resistance levels.
LTC is trading at $62.86 at press time, down nearly 1.5% over the past 24 hours.
Can buyers regain lost territory after recent decline?
Source: TradingView, LTC/USDT
LTC recently turned around from the resistance level of $71 (200-day EMA). The rejection led to a return to recent levels, near the key support zone at $62. The price is hovering near the convergence of horizontal support and resistance, making this a key point for LTC’s short-term outlook.
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Here, it is worth noting that the 20-day EMA and the 50-day EMA are trending down. If this trend continues and the 20-day EMA crosses below the 50-day EMA, this could indicate higher selling pressure. In this scenario, the next important support zone for LTC would be between $55 and $60.
The Relative Strength Index (RSI) is hovering near 42, highlighting a rather bearish sentiment. While the RSI has not yet entered oversold territory, the recent pullback could imply that there is still room for selling before buyers regain control.
MACD also confirms the bearish momentum, as both the MACD and Signal lines are pointing down after a negative crossover. A drop below the zero mark could see LTC suffer further losses in the short term.
The buyers need to defend the $62 to $63 zone to prevent further weakness towards $55. However, if the broader market sentiment favors buyers, we could see a short-term rally towards the $68 to $70 resistance zone.
See also: Lady of Crypto to ‘Sell Out’ by September 2025: X Hall of Flame
Derivatives Data Reveals THIS
Source: Coinglass
The intraday trading volume dropped by 36.22%, indicating that trading activity has cooled down, possibly reflecting high volatility among traders. Similarly, the slight 1.31% drop in Open Interest during the same period suggests that traders have been cautious.
The overall long/short position ratio is 0.9608, highlighting a slight dominance on the sell side. However, the ratio on Binance shows a strong buy dominance — reaching 2.4106. This imbalance points to traders’ optimism about a short-term recovery, although the slight sell bias could indicate further downside before a significant recovery.
Traders should monitor the behavior around the EMAs, RSI, and overall market sentiment before making any buy or sell decisions on Litecoin.
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