Litecoin (LTC) has experienced a strong rally in early May, with prices climbing above significant moving averages and breaking through resistance levels. However, as of mid-May 2025, Litecoin is showing signs of slowing down. Currently trading around $103.62, the cryptocurrency is facing resistance at $105.32, a level it has struggled to surpass. This resistance zone aligns with key price ceilings from earlier in the year, which raises questions about Litecoin’s ability to maintain its upward momentum.
Litecoin Faces Resistance at $105.32
The $105.32 price point has become a crucial resistance level for Litecoin. After breaking out from a period of consolidation below $90, Litecoin surged to this price, but repeated rejections suggest that the rally might be losing steam. This resistance area coincides with previous highs from February and March, marking it as a critical barrier for bulls. Without a decisive close above this level, traders may start to lock in profits, potentially triggering a short-term pullback in LTC’s price.
Short-Term Support Levels and Potential Price Correction
In the short term, Litecoin is testing support at $102. A failure to hold above this level could lead to a drop towards key support zones around $98.77 and the 200-period simple moving average (SMA) at $96.24. Historically, the 200-SMA has acted as an important trend indicator, and a break below this level could shift the market sentiment from bullish to neutral or bearish. Further support exists near $85.19, where the 50-period SMA resides, providing a potential last line of defense against a more significant correction.
Mixed Technical Signals as LTC Faces Uncertainty
Litecoin’s technical indicators are sending mixed signals. The recent rally produced several “Buy” signals, supported by bullish moving average crossovers. However, the appearance of “Sell” signals near the $105 resistance zone raises concerns about potential price exhaustion. Litecoin’s price is also testing the upper range of the Bollinger Bands, suggesting that the asset might be overextended in the short term. As the bands widen, increased volatility is expected, but the close proximity to the upper band indicates that a pullback may be on the horizon.
Will Litecoin Break Through or Retrace?
Litecoin is currently at a critical juncture, testing key resistance and support levels. A breakout above $105.32 could propel LTC towards the next resistance at $110, while a failure to hold above $102 could lead to a dip toward $96.24 or lower. Traders should remain vigilant, monitoring volume and candlestick patterns for confirmation of either a breakout or a potential pullback. The broader cryptocurrency market, including Bitcoin and Ethereum, could also influence Litecoin’s next move as the mid-May period unfolds.
Disclaimer: The information in this article is for general purposes only and does not constitute financial advice. The author’s views are personal and may not reflect the views of Chain Affairs. Before making any investment decisions, you should always conduct your own research. Chain Affairs is not responsible for any financial losses.
Also Read: Litecoin Soars 12% as SEC Delays Spot ETF Decision: Will the Rally Continue?
I’m a crypto enthusiast with a background in finance. I’m fascinated by the potential of crypto to disrupt traditional financial systems. I’m always on the lookout for new and innovative projects in the space. I believe that crypto has the potential to create a more equitable and inclusive financial system.
