Litecoin (LTC) Price Drops 7% As It Battles Key Support Above $120

The price of Litecoin (LTC) has dropped 7% in the last 24 hours, bringing its market cap to $9.33 billion. Despite this decline, technical indicators show mixed signals. The RSI sits in a neutral zone, while Ichimoku Cloud suggests uncertainty around the altcoin’s next move.

The EMA structure for Litecoin remains bullish overall, but the shortest-term EMA is sloping downward. If the trend continues, this could lead to a death cross. With LTC at a critical point, a breakout could see it gain 14% to $141, while further weakness could push it down 14% to $106.

Litecoin RSI Is Currently Neutral

Litecoin RSI is currently at 49.5, down from 69.6 just two days ago. This indicates a shift in momentum as the price dropped 7% in the last 24 hours, even after recent positive developments in its ETF applications.

The Relative Strength Index (RSI) is a momentum indicator that measures price strength on a scale of 0 to 100. Levels above 70 indicate overbought conditions, and below 30 suggest oversold conditions.

A reading between 40 and 60 typically signals market consolidation, where neither buyers nor sellers have clear control.

With LTC now at 49.5 RSI, it sits in a neutral zone, suggesting neither strong bullish nor bearish momentum.

However, the sharp drop from near-overbought levels indicates weakening buying pressure. If the RSI trends lower toward 40, this could lead to further declines.

If it stabilizes or moves back above 50, it may signal renewed buying interest and potential price recovery.

LTC Ichimoku Cloud Shows Mixed Signals

LTC price is currently moving downward after failing to hold above the Tenkan-sen (conversion line), which is now sloping downward, indicating a weakening short-term trend. The Kijun-sen (base line) is relatively flat, suggesting that price equilibrium is being tested, and a stronger directional move may develop soon.

The price is approaching the Kumo (cloud), which serves as an important area for trend confirmation. Staying above it would indicate continued bullish momentum, while breaking below it could signal increased weakness.

The cloud (Kumo) ahead is green, suggesting that the broader trend remains positive, but the current price movement near the cloud’s edge signals uncertainty. If the Litecoin price finds support near the cloud, which is between $120 and $126, it could stabilize and attempt to regain strength.

However, if it moves into or below the cloud, it would indicate a loss of momentum and potential trend reversal. That happens because price action inside the Kumo typically represents consolidation or indecision.

LTC Price Prediction: A 14% Upside or Downside?

Litecoin’s EMA lines remain bullish, with short-term EMAs still positioned above the long-term ones. However, the shortest-term EMA is starting to slope downward, signaling weakening momentum.

If it crosses below the longer-term EMAs, it will form a death cross, a bearish signal that could lead to further downside. In that case, the LTC price may test support at $117.

If that level fails to hold, the price could extend its decline to $111 or even $106, marking a potential 14% drop from current levels.

On the other hand, RSI and the Ichimoku Cloud indicate that the overall bullish structure is still intact, meaning Litecoin could still recover its momentum.

If buying pressure increases and the EMAs maintain their bullish positioning, LTC could climb toward the $129 resistance level. A successful breakout above that level could push the price higher to $141, representing a potential 14% gain if momentum strengthens.