Litecoin (LTC) is demonstrating notable resilience in its price action, holding crucial support levels despite a recent setback in regulatory developments. The U.S. Securities and Exchange Commission (SEC) remained silent on Thursday, February 16, 2026, which was the original deadline for a ruling on Canary Capital's proposed spot Litecoin ETF. This delay triggered short-term selling pressure, but the coin quickly stabilized.
Technically, Litecoin is at a potential inflection point. Analysis from multiple sources indicates a cautiously bullish shift. The price has recorded a bullish daily candle, defending the mid-$50s region with a focus on the $56-$57 support zone. A decisive hold above the $57 pivot level could flip it into support and confirm a shift from a downtrend to an early-stage recovery. This would open a path toward initial resistance targets at $64 and $68.
Simultaneously, at higher price levels, LTC is holding firm above a crucial support zone near $118. The coin is trading around $118.86, down less than 1.31% on the day but up over 13% for the week. Key exponential moving averages (20, 50, 100, and 200 EMA) are tightly aligned below the current price, confirming a well-supported bullish trend structure. The daily RSI has cooled to around 60, suggesting room for renewed upside momentum. A clean close above the $121.96 Fibonacci resistance could set the stage for a move toward $124.83 and potentially test the psychological $130 barrier.
Market data supports the constructive outlook. Open interest in Litecoin futures has climbed to approximately $1.01 billion, rising alongside the price—a combination that often precedes heightened volatility. Furthermore, persistent exchange net outflows, including roughly $688,000 on October 6, 2025, signal strong holder conviction and a reduction of available supply on exchanges, which may amplify upward price moves.
The relative strength of Litecoin against Bitcoin (LTC/BTC) remains a key factor. A bullish shift in this pair would indicate capital rotation into Litecoin and could fuel sharper gains, especially if Bitcoin's market behavior stabilizes or moves upward.
