Since the beginning of the year, the price of Litecoin has dropped by almost a third of its January opening price, plummeting and briefly hovering around $45 in early February. Prolonged withdrawal has calmed down the mood, but the price of Litecoin returned to stabilize around $53.
AND latest technical analysis shared on X by cryptocurrency analyst Jonathan Carter show that a triangle support defense is currently playing out for Litecoin. Technical analysis of the Litecoin price chart shows a descending triangle that has been taking shape on a weekly basis for several years. Currently, Litecoin is trading close to triangular support and reaction to this support will determine whether Litecoin can launch at $285.
The support of the descending triangle faces a major test
The weekly chart shows that Litecoin is blocked inside the gigantic descending triangle structurewith a descending resistance trendline that has rejected gains from the 2021 high at $410. Each subsequent boost brought lower highs, leading to long-term compression.
Now the price is near the lower boundary of the formation and is around $55-45. This area is critical because it has always attracted buyers, and Litecoin has never been below this level since August 2020.
Carter noted that as Litecoin tries to rebound from this lower line, and as trading volume begins to boost, the bulls get in on the action. If this level continues, it will reinforce the view that upward momentum has returned.
Five main levels on the higher path
The bullish outlook is that Litecoin does intends to maintain the upward trend after recently bouncing off support. The most recent weekly candlesticks have been reversal in nature, with the doji candle with last week’s candle being a reversal candlestick. This pattern comes after five consecutive weekly red closes, making last week’s candle particularly noteworthy as it indicates potential seller exhaustion and the early stages of a trend reversal.
If Litecoin maintains its bounce from the base of the triangle, then there will be a sequence of critical resistance levels that could shape a bounce. Carter noted various upside breakpoints between $285 as the final price target.
The first checkpoint costs around $63, which is the price point operated as a pivot area throughout 2025. A weekly clearing of this level would likely change the near-term dynamics in favor of buyers. Above, there is another resistance around $85 that could tardy the rally.
The next medium-term targets are $115, with a 2025 peak hovering around $140. A move through these levels would indicate a bullish structure where Litecoin returns to price levels not seen since the 2021/2022 cycle. In this case, the target price is around $180, and the final and most ambitious level on the chart is $285. However, this is still below Litecoin’s long-standing all-time high of $410 in May 2021.
Featured image from iStock, chart from Tradingview.com
