Litecoin (LTC) Price Could Fall Lower While Tron (TRX) Bounces Off Key Support

This Bitcoin’s hard fork has been resilient to the latest sell-off, as LTC is still delivering yearly gains of 17.1%. However, the token has not been completely immune to investors’ panic, as it has seen its value drop by 10.2% in the past week.

Market chatter about the imminent approval of a spot exchange-traded fund (ETF) for Litecoin has been one of the primary catalysts for this year’s rally.

The Litecoin network’s hash power has been increasing rapidly, making it safer and more decentralized than ever. This is important to ensure that transactions can be completed rapidly.

Since Litecoin is a more scalable version of the Bitcoin network, regulators may be inclined to give an LTC-linked vehicle the nod faster than they would approve vehicles for other cryptocurrencies like XRP and Solana, as BTC ETFs have already been cleared.

LTC Triple-Top Pattern Has Been Confirmed

Litecoin (LTC) has rejected a move above the $140 level three times already in the past three months.

As a result, a triple-top pattern has formed. This is a high-probability technical setup that typically precedes a trend reversal. The second time the price action failed to climb above the $140 level, on January 17, it resulted in a 26.3% drop for LTC.

If a similar decline takes place after the latest rejection of this resistance, it would mean that LTC could move down to $100 per coin in the next few days.

Market conditions are favoring this bearish outlook, as sentiment is at its worst in nearly two years according to the Fear and Greed Index.

Moreover, momentum indicators have moved to negative territory. In this regard, the Relative Strength Index (RSI) sent a sell signal last Sunday, just days after the third top was confirmed. Moreover, the MACD’s histogram has dropped to negative territory.

Fibonacci retracement levels indicate that a drop below $110 would further confirm a bearish outlook.

Buyers Scoop Up TRX at $0.216 – Can it Bounce Back?

Tron (TRX) has not been affected to the same extent that other cryptocurrencies by this latest selling spree as the token is down only 1.3% today in the past 24 hours.

Meanwhile, since the year started, TRX has delivered milder losses of 11.1% compared to other smart contract platforms like Cardano, Solana, and Ethereum, whose native assets have retreated by 28%, 27.3%, and 36.6% respectively.

TRX’s positive performance in 2024 managed to propel the Tron network once again to the top 10.

The token’s latest price action shows a spike in demand once the asset touched the $0.216 level. However, TRX continues to be on a downtrend, as it has made several consecutive lower highs.

A descending triangle has formed as a result of the latest price swings. This setup could result in a trend reversal as buyers keep popping up at this support level, which could eventually lead to sellers’ capitulation.

If that happens, a first target for TRX could be set at $0.25, meaning an 11% upside potential from today’s levels.

However, momentum indicators are still not confirming this bullish outlook. As long as bulls manage to defend this key threshold, momentum readings will turn positive at some point.

Meanwhile, if a break below the $0.216 level occurs, the next key area of support to watch would be found at $0.203, which would translate into a 10% drop from TRX’s current levels.