- Litecoin nears the $135–$140 resistance zone that has repeatedly capped gains since late 2023.
- A confirmed breakdown below $100 could lead to a 35–40% correction toward the $66–$70 range.
- Optimism over Canary Capital’s proposed spot Litecoin ETF could support bullish sentiment despite technical risks.
Litecoin is approaching a significant resistance zone between $135 and $140, a range that has repeatedly limited gains since late 2023. The cryptocurrency remains in a medium-term uptrend within a rising channel formed in early March. However, its momentum now faces a decisive challenge as traders watch for potential rejection from this long-standing barrier.
The recent rebound from the $100 trendline support reaffirmed the structure of Litecoin’s ongoing uptrend. This ascending channel has guided price action for months, but analysts caution that repeated failures near $140 could signal a possible shift in direction. If the price once again fails to close above this resistance zone, a bearish double-top pattern could form on the weekly chart.
Double-Top Formation Could Trigger Sharp Decline
The neckline of this potential double-top aligns closely with the $100 support level, which has acted as both a horizontal and trendline base. A confirmed breakdown below this zone could result in a significant correction. Technical projections suggest a possible drop toward $66 to $70, a decline of roughly 35 to 40 percent from current levels. Some analysts, including Ali Martinez, foresee an even steeper fall toward $50 if the rejection gains momentum.
Despite looming technical risks, market sentiment remains cautiously optimistic due to potential regulatory developments. Interest has grown around Canary Capital’s proposed spot Litecoin ETF, which recently underwent a filing amendment. Market observers believe approval prospects could improve once the U.S. Securities and Exchange Commission resumes normal operations following the government shutdown. Such developments could support Litecoin’s price, offering a counterbalance to technical downside pressures.
Outlook
Litecoin’s price action now hinges on how it responds to resistance near $140. A sustained breakout could extend its medium-term rally, while rejection from this zone may trigger a broad correction. Market participants are closely monitoring both the chart structure and broader investor sentiment to gauge the next decisive move.
