Litecoin is once again at a critical crossroads, with its long-term structure remaining intact after years of successful hedging. However, the margin of error is miniature. As the price hovers near key levels, a $63 barrier has emerged that bulls need to protect. A break below this value could change the dynamics dramatically, while a hold above it will keep the broader bullish structure alive and set the stage for the next decisive move.

The structure subsides and the expansion phase begins

The latest version of LTC from Columbus update highlights that the multi-year compression that had previously narrow price action has finally subsided, leading to a clear breakout of the long-term chart configuration. This structural change confirms the transition from a neutral to a clearly increasing state.

The current price action is being described as a pause before expansion, not the end of a rally. During this phase, Litecoin holds steadily above the elderly resistance levels, allowing the market to load into the next stage of the move, turning previous barriers into up-to-date support. Litecoin’s expected development path is based on the typical behavior of expansion cycles after structural breakdowns.

The strategy is based on a clear three-stage development: an initial breakthrough, followed by an ongoing acceptance phase. Once the market fully accepts these up-to-date price levels, the “real move” begins, which is the phase in which the most significant gains are expected to materialize.

The 9-year trendline that continues to control Litecoin

Matthew Dixon highlighted the huge historical importance of Litecoin’s long-term trend line. This line was an indestructible floor for nine years, and the price never closed below it. Although the market has fallen below this line numerous times in the past, each attempt to break down has ultimately failed, maintaining a remarkably consistent structural defense.

Now the market environment is once again putting this nearly decade-old support to the test. Dixon emphasizes that we cannot rely on intra-month variability to determine the outcome. Instead, the final signal is based solely on the close of the monthly candle. This closing price will be a macroeconomic turning point that will set the main direction for the coming months.

A successful stay above the trendline would be mighty confirmation for the bulls, suggesting that the long-term uptrend remains intact despite external pressures. Conversely, a confirmed close below this line would shift the narrative to bearish, marking a historic breakdown of the nine-year support system.

Certain technical factors also come into play, particularly the $63 level. Dixon warns that a drop below $63 would be devastating because it would effectively invalidate the underlying bullish divergence that is currently supporting the price. Given this risk, Dixon recommends remaining patient until the month close or ensuring a strict loss stop for all vigorous trades.