Can Litecoin Reach New Highs in 2025?

The new trading week has begun with a significant bearish impulsive move in the cryptocurrency market, raising concerns among traders. However, this correction was anticipated by us at BITmarkets and is widely considered a normal aspect of market dynamics.

For investors aiming to take advantage of these conditions, maintaining discipline, avoiding emotional decisions, and adhering to established trading guidelines is essential. Wondering what these key guidelines entail? Let’s explore Litecoin.

Daily time frame analysis

LTCUSD - 1 Day Time Frame

The recent decline in Litecoin’s price stems from factors highlighted in our latest analysis. From a technical perspective, earlier price movements led to the formation of relatively equal lows, which retail technical analysis traditionally views as support levels expected to hold.

This theory often encourages buying at such levels. However, market movements are primarily driven by liquidity.

As a result, it is common for prices to dip below these perceived support levels (or exceed them in the case of highs) before making any significant moves.

As outlined in our previous analysis, Litecoin’s price formed relatively equal lows at the top of a critical support zone, which was defined using an unconventional method. At BITmarkets, we identify support and resistance zones based on impulsive price movements that create unbalanced areas within price delivery.

Simply put, the support zone in this context was marked where a new candle failed to breach the low of the preceding candle. This specific zone is highlighted in orange on the attached chart.

Litecoin price target

If, on the daily timeframe, the price remains above the lower boundary of this marked support zone without closing below it, the buy scenario remains valid. Additional confirmation for entering a buy position would be evident if the current downward trend is followed by a strong bullish rebound.

Such a pattern would reinforce the rationale for initiating a buy position under these technical conditions.