Litecoin's Price Hovers Near $96 Amidst Key Support Levels

Litecoin (LTC) is currently experiencing a period of uncertainty, with its price oscillating around key support and resistance levels. After a strong rally in May that pushed the price above $100, LTC is now trading at $96.01, caught in a tight range. The daily chart indicates a clear uptrend that began in mid-April, with LTC rallying from below $80 to a local high near $104. During this rally, Litecoin successfully flipped its 50-day moving average, now at $96.60, into support and briefly crossed above the 200-day moving average, which is currently at $100.41.

However, LTC has struggled to maintain its position above the $100 psychological resistance zone for more than a few sessions. The current Heikin Ashi candles are showing signs of losing momentum, with a narrowing range between $94 and $101. This indecision often precedes a breakout. The Fibonacci retracement from the April low to May high shows that Litecoin is hovering around the 38.2% retracement level near $96, which is acting as support. If LTC holds above this level, the next leg up could test $104 again, followed by $112, which corresponds to the 1.618 Fibonacci extension. According to the analyst's forecast, if momentum returns, a move toward $120–$125 is possible, but this will require strong volume and a clean break above $104.

On the hourly chart, Litecoin is currently trading below all major moving averages, which are acting as a cluster of resistance around $97.50 to $100. This indicates that short-term momentum has shifted in favor of sellers. The recent bounce from $94 to $96.01 has been weak, with low volume and rejection at each resistance level. The Heikin Ashi candles indicate indecision and a slight bearish bias, marked by long upper wicks and small real bodies. Unless LTC breaks and sustains above $98.66, the 100-hour SMA, another dip to test the $92 support level is possible. A loss of $92 could open the gates to $88 and potentially $85.

On the bullish side, the 50-day SMA is currently supporting the price. If this support holds and bulls reclaim $100, LTC could attempt another breakout above $104, targeting $112 and potentially $120. On the bearish side, failing to hold $94 may drag Litecoin toward $90 and then $85, especially if Bitcoin remains under pressure this week. Litecoin price is in a make-or-break zone. If LTC breaks above $100 with volume, it could target $112 and eventually $120 based on Fibonacci extension. However, if it fails to hold $94, then a pullback to $88–$85 becomes likely. Keep an eye on the daily close relative to the 50-day and 200-day moving averages. They will likely decide whether LTC breaks out or breaks down.