Litecoin price prediction: Will there be a recovery after the recent correction?

After a strong rally in November that saw Litecoin (LTC) reach a 2.5-year high, the altcoin has struggled to maintain its momentum. The price fell from a peak of $147 on December 5 to the current level of $104. What can we expect from this veteran among altcoins? Is a further decline inevitable, or does a bullish future lie ahead?

What does the Litecoin price tell us?

Litecoin has been in an accumulation phase between around $50 and $105 since spring 2022. In November 2024, LTC appeared to break this pattern with a breakout to $145. Currently, the price is resting at the $105 support level, the upper limit of the year-long channel.

Despite the sharp decline, this offers some hope. LTC has found support at the previously broken resistance line, possibly indicating bottom formation. However, technical indicators such as the Relative Strength Index (RSI) and the MACD remain neutral, creating uncertainty about the future direction of the price.

Correction or a deeper decline?

An analysis of the wave structures suggests that Litecoin may have completed a corrective ABC pattern. According to Fibonacci projections, this could lead to a recovery with a price target of $184. In the short term, $125 seems a more realistic target.

However, Litecoin’s future depends heavily on how the price behaves in the current zone. The $105 support level is crucial: a strong bounce from this level could strengthen bullish sentiment and usher in a new uptrend. However, if the price falls through this support level, there is a risk that LTC will fall back into the accumulation channel.

Conclusion: What can we expect?

Litecoin performed impressively in November, but now appears to be cooling off. The correction respects the support level of $105 for the time being. Whether LTC recovers and heads towards $125 or even $184 depends on the upcoming moves around this critical level.

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