FX.co ★ #Litecoin chart analysis

1. Support and Resistance Levels Litecoin is currently caught between high-stakes psychological and technical boundaries. Immediate Support: The most critical floor is the $68.00–$70.00 zone. Maintaining this base is vital; a breach below could lead to a retest of stronger support at $64.97 or even the November low of $50.31. Key Resistance: Bulls face immediate friction at $73.69, aligning with recent moving average pressure. A decisive breakout above $84.57 is required to reclaim the primary bullish trend and target the analyst consensus range of $87–$95. 2. Volume and Momentum (RSI) Indicators suggest that while the immediate trend has been weak, the market is showing signs of stabilizing. Volume Indicator: Recent turnover shows moderate liquidity, with spot markets recording roughly $27.5 million in 24-hour volume. For a genuine reversal, a high-volume spike is needed to confirm buyers are absorbing the supply. Relative Strength Index (RSI): The 14-day RSI is currently at 46.6 to 54.9, placing it firmly in the neutral zone. This indicates that the asset is neither overbought nor oversold, providing ample room for a directional move once momentum shifts.

3. Strategic Trade Setup Based on the current "measured recovery" potential, traders can consider the following targets: Take Profit (TP): Conservative: $78.90, aligning with the 20-day SMA for partial profit taking. Strategic: $88.00–$95.00, representing the 0.618 Fibonacci retracement and medium-term objective. Stop Loss (SL): Aggressive: $67.50, just below the recent daily lows. Structural: $64.00, to protect against a macro breakdown of the primary support. 4. Risk Management Given the current 48-hour "make-or-break" technical window, disciplined risk management is essential. Position Sizing: Limit total risk to 1% to 3% of your total portfolio on any single LTC position. Volatility Adjustment: The Average True Range (ATR) is currently around $3.12, suggesting daily swings of roughly 3% to 4%; traders should adjust their stop-loss distances accordingly to avoid being "shaken out" by market noise. Conclusion Litecoin’s outlook for early 2026 remains cautiously optimistic if it can hold above the $68 support floor. While the broader long-term trend is supported by halving scarcity and potential ETF catalysts, the short-term path requires a volume-confirmed break above $74 to validate a new rally.