Litecoin (LTC) is currently experiencing bearish pressure with technical indicators suggesting a possible decline to $83. Analysts have identified a "dead-cat bounce" pattern after LTC failed to break above the $90 resistance level, with the asset trading around $89. Despite some weekly gains, LTC has lost ground over the last 24 hours and across broader time frames such as the last 30 and 90 days. Key support levels are around $86.66, $85.96, and $82.01, with a potential drop to $77 if bearish momentum intensifies.
The derivative market shows significant short positions, with a long-to-short ratio of 0.82, indicating bearish trader sentiment. Price rejections near $93 to $95 are notable due to a large number of addresses holding LTC in this range, creating resistance. However, breaking above $96 could pave the way for a move to $100 and eventually $107.
Bollinger Bands analysis signals continued downward pressure, with LTC's 20-day moving average pointing down after falling below the middle band, confirming the bearish trend. Trading volume has also declined, reinforcing the pessimistic outlook. Historical data shows LTC typically experiences growth in June; some analysts remain optimistic about a potential rebound, especially if positive news emerges, such as approval of a Litecoin Exchange Traded Fund (ETF) currently under review by the US Securities and Exchange Commission (SEC).
While short-term risks dominate, long-term prospects may improve contingent on breaking resistance levels and regulatory developments. Analyst Poseidon has projected a bullish target of $300 in a more optimistic scenario.