Litecoin Attempts to Maintain Position Above $120 Amid Market Downturn

Litecoin (LTC) is facing challenges maintaining its position above $120, currently priced at $112 after a 9% decline in 24 hours. This downturn coincides with a broader market slump resulting in over $250 million in liquidations.

Network Growth Defies Price Action

Litecoin's address count exceeds 8 million, exceeding the 30-day average of 8.15 million.
Transaction volume has increased from $3.70 billion to $11.30 billion in six months.

#Litecoin $LTC faced rejection at the $135 resistance, which could lead to a pullback toward support at $98! pic.twitter.com/UchvWgc6G8

— Ali (@ali_charts) February 23, 2025

Technical Patterns Indicate Potential Downturn

Analyst Ali Martinez notes a parallel channel on Litecoin's daily chart indicating downward pressure.
A double-top reversal pattern suggests potential declines towards $115.
The lower boundary of the channel is around $98, marking a critical support level.

Derivatives Data Shows Mixed Sentiment

The long-to-short ratio stands at 0.90, indicating more negative sentiment overall.
Major exchanges like Binance and OKExchange show more positive ratios.
Bulls faced $2.70 million in losses, while bears incurred $440 in losses over the past day.

Strategic Opportunities Emerge From Volatility

A pullback to the $98 support level may present buying opportunities for investors.
A clear break above $135 could signal a potential rebound phase.