Is $87 the Next Major Target for Litecoin After a Critical Support Hold?

Litecoin (LTC) has long been a barometer for broader cryptocurrency market sentiment, and its recent price action in December 2025 underscores its strategic importance. With the asset consolidating near a critical support level at $75.29, traders and investors are scrutinizing whether a successful hold could catalyze a rebound toward $87-a price point aligned with Fibonacci retracement levels and key technical indicators. This analysis explores the validity of $87 as a near-term target, evaluates the risk-reward dynamics, and contextualizes the broader implications for Litecoin's trajectory.

Technical Foundations: Support, Resistance, and Fibonacci Dynamics

Litecoin's price structure in December 2025 reveals a tug-of-war between bullish and bearish forces. The immediate support at $75.29 has held firm as a psychological and technical floor, with historical data suggesting its significance as a confluence of prior lows and Fibonacci retracement levels. If this level is successfully defended, the path of least resistance appears to point toward $87, a price that aligns with a 38.2% Fibonacci retracement of the recent $75.29–$133.67 range.

The 4-hour chart further reinforces this narrative, with $87 marking a swing high that could act as a magnet for buyers seeking a short-term entry point. Crucially, the Moving Average Convergence Divergence (MACD) line has crossed above the signal line, signaling bullish momentum, while the Relative Strength Index (RSI) remains in neutral territory at 60.2, avoiding overbought conditions that might trigger profit-taking. These indicators suggest that Litecoin could be entering a phase of constructive price discovery, provided volume remains robust above $410M.

However, the broader trend remains bearish, with the 50-day moving average ($81.6) lagging below the 200-day moving average ($99.4), a classic "death cross" pattern. This divergence highlights the need for caution: while $87 may represent a tactical target, a sustained break above $133.67-historically a key resistance level-would be necessary to invalidate the bearish bias.

Risk Assessment: What Happens If $75.29 Breaks?

The stakes are high for Litecoin's near-term outlook. A breakdown below $75.29 would not only signal the end of a three-year rally but also expose deeper support zones at $70–$75, with a 52-week low of $69.15 looming as a potential terminal target. Analysts warn that such a move would trigger a cascade of bearish confirmations, including an RSI below 50 and a negative MACD histogram, both of which are already flashing cautionary signals.

Moreover, the $93–$98 range-a stronger support cluster identified in recent analyses-would become a critical battleground if the price rebounds from the $70–$75 zone. A failure to reclaim this area would likely cement a bearish continuation pattern, with further downside risks extending into early 2026.

Risk-Reward Setup: Is $87 a Viable Entry Point?

For traders considering a near-term entry, the risk-reward profile appears balanced but not without caveats. A successful hold above $75.29 offers a potential reward of $11.71 (to $87) against a risk of $5.29 (to $70). This 2.2:1 ratio is favorable for a short-term trade, particularly if volume surges on the breakout, confirming institutional participation.

However, the asymmetry of risks cannot be ignored. A breakdown below $75.29 would expose a significantly larger downside, with the $69.15 level representing a 10% drop from the current price. This asymmetry underscores the importance of tight stop-loss placement and position sizing, especially given Litecoin's volatility.

Broader Implications and Market Sentiment

Litecoin's performance in December 2025 is also influenced by macroeconomic factors. The asset's resilience over 14 years has been tested by weak demand in a tightening credit environment, with some analysts attributing this to broader market fatigue. Yet, the recent rebound from the $70–$75 support zone suggests that Litecoin remains a bellwether for risk-on sentiment, particularly in a market anticipating a potential Fed rate cut in early 2026.

Conclusion: A Tactical Opportunity Amid Uncertainty

The case for $87 as a near-term target hinges on Litecoin's ability to defend $75.29 and generate follow-through buying volume. While technical indicators like the MACD and RSI offer encouraging signals, the bearish bias from moving averages and the proximity to key resistance levels necessitate a measured approach. Traders should monitor the $87 level not as a definitive bull case but as a tactical inflection point that could either validate a short-term rebound or signal deeper weakness.

In the end, Litecoin's December 2025 narrative is a microcosm of the broader crypto market: a delicate balance between optimism and caution, where every candlestick holds the potential to rewrite the script.