Litecoin Stuck at 3-Month Resistance, Breakout Not Likely – Here’s Why

Litecoin (LTC) has faced continuous challenges over the past three months, unable to break through the crucial resistance level at $136. Although there have been recent efforts to overcome this barrier, this altcoin has struggled to maintain its upward momentum.

Some believe a breakout is imminent, but the lack of support from investors suggests the price may continue to decline.

Litecoin Investors Not Supportive

According to the Mean Coin Age (MCA) indicator, long-term holders (LTHs) of Litecoin have not recently exhibited significant price-increasing behavior. The lack of clear growth indicates minimal accumulation, causing the market to stagnate. If the MCA indicator shows a significant decline, it could signal that LTHs are selling, which would be a bearish sign. However, since this has not occurred, Litecoin may avoid a sharp decline but still faces difficulties in attracting long-term investment.

Without strong commitment from LTHs, Litecoin may continue to move sideways without a significant price increase. Minimal accumulation from investors often determines the long-term trend, causing this altcoin to get stuck in the same range without notable progress. Until LTHs show greater interest, substantial gains for Litecoin seem unlikely.

The overall macroeconomic momentum for Litecoin is being heavily impacted by the Chaikin Money Flow (CMF) indicator, which has struggled to maintain above the zero line for the past two months. The lack of inflow has hindered Litecoin's ability to rally strongly. Although the CMF has shown some signs of increase recently, it has not yet signaled a sustained uptrend, leaving this altcoin in an uncertain state.

Since the beginning of the year, Litecoin's price has remained relatively stable, with the lack of strong market inflow contributing to its stagnation. The continued struggle of the CMF to cross above the zero line reflects the widespread market hesitation towards Litecoin. While the recent increase provides some hope, whether this momentum can be sustained remains uncertain.

LTC Price Faces Crucial Resistance

Currently, Litecoin is trading at $129, reflecting a 13% increase in the past 24 hours. This increase has brought the altcoin closer to the crucial resistance level of $136, which it has struggled to break through over the past three months. The current price action suggests Litecoin may attempt another rally, but the factors that caused its previous failures are still present.

If Litecoin fails to break above the $136 resistance level, the price may Dump back to $117, with the next support at $105. A Dump below these levels would signal the continuation of the downtrend, keeping Litecoin below the crucial resistance for an extended period.

If Litecoin successfully breaks above the $136 resistance and turns it into support, a significant price increase could occur. The next target would be $147, just below the psychological level of $150. Achieving this target would negate the bearish outlook and could put Litecoin on a path towards higher prices.