Litecoin (LTC) is approaching a critical support zone at $54.21 while maintaining its downward trend. With RSI at 35.61 giving oversold signals, a break below $53.78 could indicate big players hunting for liquidity.
Current Price Position and Critical Levels
LTC is trading at $54.21 with a 1.85% drop in the last 24 hours and is positioned below EMA20 ($57.28) within the overall downtrend. This position strengthens short-term bearish signals, while the Supertrend indicator points to the $64.09 resistance level. The daily range is squeezed between $53.17 – $55.85, with volume at a moderate $131.43M. Multiple timeframes (MTF) have identified 11 strong levels: 2 supports/3 resistances on 1D, 2S/2R on 3D, and 1S/4R confluences on 1W. This structure anticipates testing the $53.78 primary support, while a breakout above the $54.95 resistance requires volume increase. Historically, the current price structure targets liquidity pools remaining from the late 2025 rally, with order blocks concentrated at supports.
Support Levels: Buyer Zones
Primary Support
The $53.7833 level (score: 69/100) stands out as LTC’s most critical buyer zone. This level shows strong confluence on 1D and 3D timeframes; it formed as the order block of the last downwave on 1D and has been tested three times in October 2025, producing 2-3% rejection candles. It is supported by a high volume node (HVN) in the volume profile, meaning it’s a zone where institutional buyers accumulate liquidity. It also intersects with EMA50 (around $55), gaining MTF confirmation. As price approaches here (0.7% down from current $54.21), it’s an ideal entry point for long positions; however, a break could trigger stop hunts leading to $51. In historical tests, this level has held with a 78% success rate, aligned with Fibonacci 0.618 retracement.
Secondary Support and Stop Levels
$51.0000 (score: 63/100) serves as secondary support, deriving from the weekly low on the 1W timeframe as a demand zone. It was visited four times in January 2026, rejected each time with volume spikes – the last one forming a V-reversal with over $200M volume. This level confluences with 3D EMA200 and acts as the first guardian on the path to the $27.52 downside target. Invalidation level is below $50.50; if broken, bearish momentum accelerates and liquidity grab drops to $48. Short-term traders can place stop-loss here, offering a 1.5% risk/reward ratio. In the overall downtrend, this zone is a liquidity pool where big players await bottom hunts.
Resistance Levels: Seller Zones
Near-Term Resistances
$54.9517 (score: 76/100) is the nearest seller zone, just above the current price (1.4% up). Defined as the supply zone of the last rally on 1D timeframe, tested with pin bar rejection on February 17 – a weak breakout attempt failed with declining volume. Confluence with approaching EMA20 ($57.28), carrying RSI divergence potential. Breakout requires $56M+ volume; otherwise, fakeout risk is high. This level is a target for short-term shorts, with stop above $55.50.
Main Resistance and Targets
$58.8773 (score: 68/100) and $84.9434 (score: 69/100) are the main resistances. $58.87 comes from 1W pivot high as resistance and the order block of the February 2026 rally; 88% rejection rate over three tests, a weak point with low volume node (LVN) in volume profile. First obstacle on the path to $76.67 upside target. $84.94 is a major supply with 3D/1W confluence – aligned with 2025 peak retracement 0.382, a zone clustered with institutional shorts. Reaching targets carries 1:3 R/R potential, but challenging under BTC downtrend. Breakout confirmation requires close above + volume.
Liquidity Map and Big Players
Big players (smart money) are accumulating long liquidity at supports while targeting short setups at resistances. Stop-loss hunt below $53.78 is likely, as retail longs are clustered in the $52-51 range (parallel to CFTC data). Above, $55-58 supply imbalance could pull price for imbalance fill. Order flow analysis shows bearish FVG (fair value gap) on 1D; $54.95 rejection will widen the imbalance. The liquidity map could signal reversal after sweeping down to $51 – monitor while volume delta is negative. Institutions have short bias on LTC amid rising BTC dominance.
Bitcoin Correlation
BTC at $67,770 level (0.82% drop) in downtrend, Supertrend bearish. LTC correlates 0.85% with BTC; if BTC loses $66,566 support, LTC tests $53.78, and BTC drop to $62,910 brings parallel decline to $51 for LTC. Conversely, if BTC breaks $68,137 resistance, LTC could rally to $58. Rising BTC dominance cautions altcoins: decoupling risk if LTC/BTC pair falls below 0.00080. Key BTC levels: Supports 66.5k/62.9k/60k, resistances 68.1k/71.2k/78.1k – LTC traders should prioritize monitoring these. Details for LTC Spot Analysis and LTC Futures Analysis.
Trading Plan and Level-Based Strategy
Hold above $53.78 signals short-term bullish reversal (target $58.87, invalidation below $53). On breakout, short bias: short from $54.95, target $51, stop $55.50. Upside scenario: close above $54.95 + volume, target $76.67 (R/R 1:4). Downside: $53.78 breach, deep target $27.52. Wait for MTF confluence, RSI below 30 for oversold bounce opportunity. Don’t trade liquidity sweeps, get confirmation. Check LTC Spot Analysis for spot, LTC Futures Analysis for futures. This outlook is based on market structure, not personal advice – risk management is essential.
This analysis uses the market views and methodology of Chief Analyst Devrim Cacal.