Litecoin (LTC) Price Struggles to Recover After the Latest Market Crash, Can 3-Month Support Hold?

Litecoin price was a victim of the latest crash just as was the case for most other cryptocurrencies. However, it did demonstrate support just below the $98

Litecoin (LTC) price has been struggling to gain bullish momentum despite attempts at a recovery following the latest market crash.

LTC price action slid below a crucial support level, indicating a lack of demand for the cryptocurrency.

However, on-chain metrics suggest a shift in dynamics among different classes of LTC holders.

Litecoin price attempts to recover from the latest market crash, but a closer look at the 1-hour chart reveals a struggle.

LTC price failed to break out from a wedge pattern, indicating a bearish divergence from the 1-hour chart.

This breakout would have signaled a strong bullish build-up and a potential rally toward the $130 resistance zone.

However, price action slid below the support earlier in the day, confirming that demand was not strong enough to fully enter recovery.

LTC price slid down to $100.45 at press time and threatened to drop below the $100 mark.

However, the prospect of more downside was notably high, considering that LTC was not yet oversold on both the 1-hour and 1-day charts at the time of writing.

Moreover, Litecoin spot flows pushed back into the red by $6.59 million in the last 24 hours.

The situation was similar in the derivatives segment, where open interest was down by 2.91%, reaching $466.58 million in the last 24 hours.

Derivatives volume also cooled down by 1.73%, reaching 1.15 billion during the same time.

Observations in the spot and derivatives segment confirm that Litecoin is struggling to gain bullish traction, reflecting the overall market sentiment.

Despite the bearish outlook, Litecoin could easily be headed for another retest of its 3-month support near the $97 price zone.

LTC price has so far demonstrated strong support within this level.

However, a dip below this key support could signal further demand erosion and pave the way for more potential downside.

LTC price crashed over 20% on 2 February, following a massive liquidation event across the cryptocurrency market.

However, the cryptocurrency demonstrated some recovery attempts over the next few days, as evident in its 1-hour chart.

LTC price has been trading in a wedge pattern with an ascending support line indicating a buildup of bullish momentum.

A breakout from this pattern would have confirmed a strong bullish build-up.

However, as the 1-hour chart unfolds, it reveals a bearish divergence from the technical analysis.

LTC price action broke below the support earlier in the day, confirming that demand was not strong enough to fully enter recovery.

The opposite outcome would have likely resulted in a rally towards the $130 price level which is the next major resistance zone.

Instead, LTC price slid all the way down to $100.45 at press time and threatened to slide below the $100 mark.

However, the prospect of more downside was notably high, considering that LTC was not yet oversold on both the 1-hour and 1-day charts at the time of writing.

Moreover, Litecoin spot flows pushed back into the red by $6.59 million in the last 24 hours.

The situation was similar in the derivatives segment where open interest was down by 2.91%, reaching $466.58 million in the last 24 hours.

Derivatives volume also cooled down by 1.73%, reaching 1.15 billion during the same time.

Observations in the spot and derivatives segment confirm that Litecoin is struggling to gain bullish traction, which reflects the overall market sentiment.