Litecoin Hits Critical Long-Term Support: Is a $250 Rally Imminent?

Litecoin isn't just testing a line on a chart—it's bouncing off a historical floor that's held through multiple market cycles. This isn't a minor dip; it's a major technical event.

The Support Zone That Refuses to Break

Traders are watching a specific price level that has repeatedly acted as a springboard for Litecoin. Each touch has preceded a significant move upward. The pattern is clear, and the current price action suggests we're seeing it play out once more.

Momentum Builds for the Next Leg Up

The consolidation near this key area isn't a sign of weakness. It's the market gathering energy. When assets consolidate at major support after a decline, the subsequent moves tend to be explosive. All the classic signs of a reversal are lining up.

The Path to $250

A clean break above immediate resistance opens a clear runway toward the $250 target. That figure isn't plucked from thin air—it represents a key Fibonacci extension level and a major psychological barrier from previous cycles. Reaching it would signal a full recovery of recent losses and then some.

Of course, in crypto, even the most beautiful chart can be ruined by a single tweet from a billionaire or a regulator having a bad day—because fundamentals are so last season. But for now, the technicals are screaming that Litecoin's foundation is solid, and the only direction from here is up.

Litecoin Holds Firm On Major Trendline

Litecoin is right on top of its multi-year trend line within the symmetrical triangle pattern. Historically, this area between $72 and $75 has created very strong buying enthusiasm in past cycles. It is also a spot that buyers strongly defend. Volume is contained during the downtrend, and this is commonly known to be an accumulation phase before a breakout.

Crypto analyst @butterfly_chart highlighted that if Litecoin rebounds from this support, the first upside targets lie at $88-$90.  Middle ranges for resistance are pegged at around $104 and $110 within the triangle. In the event that it breaks out above the descending trendline, it may mark the start of a wider rally. The total potential rally may go to $180, and for the long-term target, it would be between $200 and $250.

The breakdown scenario also needs to be watched. In the event of a close below $70 on a weekly chart, it will weaken the entire multi-year structure and confirm the loss of trendline support. In this case, Litecoin may decline to levels of $66 initially and further until levels of $54-$58. Until then, the entire market structure remains conducive to a possible upside.

Momentum Indicators Highlight Bearish Strength

The RSI is currently at 38.05, which is below its moving average at 49.04, showing obvious signs of downward movement. Lowering this far towards the lower band indicates less purchasing strength and rising selling pressure. The development of lower highs in this situation further supports less purchasing strength and rising selling pressure.

Now, the MACD line at -4.04081 is marginally above the signal line at -4.05323, and the histogram shows that the MACD is at -0.01242, which is negative. The red bars confirm that the downward forces are strengthening as the sell side dominates the markets.