Litecoin (LTC) has encountered strong resistance at the $100.68 level, leading to a sharp rejection that technical analysts are calling a “bullish trap.” The failed breakout has invalidated the short-term bullish case, with LTC now trading below its 20-day and 50-day moving averages. This price action suggests traders who bought the breakout have been caught in a false momentum play, potentially triggering further liquidation events.
The rejection comes amid weakening on-chain metrics for Litecoin. Exchange inflows have increased by 18% over the past 48 hours, indicating growing selling pressure. Additionally, the network’s hash rate has declined 7% from its monthly high, raising concerns about miner capitulation. “The $100 level was always going to be a psychological battleground,” noted FXLeaders senior analyst James Harte. “With this rejection, we’re now watching the $88 support level – a break below could accelerate losses toward $80.”
Market sentiment around Litecoin has turned cautious ahead of its August 2025 halving event. While historical patterns suggest potential pre-halving rallies, the current technical setup warns of continued downside risk. Traders are particularly concerned about LTC’s correlation with itcoin">Bitcoin, which has shown weakness at its own resistance levels. The next 72 hours of price action will be critical in determining whether Litecoin can stabilize or faces another leg down in this corrective phase.
