Litecoin Recovery Stalls Below Key Resistance as Geopolitical Tensions Rattle Markets

Litecoin (LTC) is struggling to regain bullish momentum after last week’s heavy sell-off triggered by renewed Middle East conflict. The token fell over 4.3% this week and has shed more than 14% in the past month, weighed down by broader risk aversion across global markets.

The turmoil began after Israel launched targeted strikes on Iran aimed at disabling its nuclear infrastructure and missile capabilities. Iran’s retaliatory missile barrage only escalated fears, sending shockwaves through risk assets. The total crypto market cap has dropped over $150 billion in the aftermath.

LTC initially staged a modest recovery, bouncing from lows near $84 to reclaim the $86 level. However, its upward momentum faded quickly, stalling at $97.80 — a level aligning with the 23.6% Fibonacci retracement, according to CoinDesk Research’s technical model.

Momentum indicators show fading strength: the Relative Strength Index (RSI) lingers at 43.46, while the MACD histogram remains flat, suggesting any further upside may be capped in the short term. A consolidation phase now appears likely.

Trading volume dropped 42% after the initial crash, despite a brief burst of activity that pushed prices momentarily above $85.90 late Friday. That move was quickly reversed as sellers stepped in, dragging LTC back to $85.

Meanwhile, optimism surrounding a potential spot Litecoin ETF remains in the backdrop. Bloomberg analysts Eric Balchunas and James Seyffart maintain a 90% likelihood of approval, offering a potential catalyst should market conditions stabilize.