Litecoin Faces Bearish Pressure Following Crypto Reserve Exclusion

Litecoin (LTC) has been under pressure recently, falling 15% this week after spending four months ranging between $88 and $140. The downturn follows news that U.S. President Donald Trump announced a Bitcoin reserve and named four other cryptocurrencies to be included—leaving Litecoin off the list.

This exclusion came after the White House crypto summit and has sparked renewed concerns among investors.

Technical Analysis: Breaking Key Support Levels

Litecoin’s drop this week pushed it below a critical horizontal support line, suggesting that further downside could follow if the breakdown continues without a quick reversal. The price has been moving within an ascending parallel channel since June 2022, with resistance and support trend lines validated multiple times.

Over the past four months, Litecoin has attempted three breakouts from this channel—each time failing to sustain momentum. The most recent breakdown confirms that the previous upward move was merely a deviation, and the failed breakout means that the area previously seen as support may now act as resistance. 

A decisive close below the channel’s midline would signal a bearish trend and could send prices plummeting toward the $68 support level.

Wave Count Hints at Further Downside

The wave count analysis for Litecoin also indicates a bearish outlook. The most likely scenario suggests that the ascending channel contained an A-B-C-D structure, hinting at a downward move now that the pattern has completed. 

This structure aligns with the overall technical weakness observed recently.

Bulls Lose Momentum as Bears Take Control

Litecoin showed remarkable resilience in January and February, but March has seen bullish momentum evaporate. The recent dip led to the lowest daily and weekly closes of the year, reinforcing the bearish sentiment among traders.

With Litecoin’s absence from the newly announced crypto reserve and its technical indicators pointing to a deeper decline, investors should remain cautious. A break below the channel’s midline would likely trigger more selling pressure, making the $68.30 support level a critical area to watch.