Litecoin Faces Key Resistance at $140 as Analysts Warn of Possible 40% Pullback

Litecoin is testing a strong $135–$140 resistance level that has repeatedly halted upward moves since December last year.

A confirmed breakdown below $100 could trigger a 35–40% decline, with downside targets between $66 and $70 per coin.

Optimism around Canary Capital’s spot Litecoin ETF proposal may cushion price weakness if broader sentiment turns favorable.

Litecoin is approaching a crucial resistance zone between $135 and $140 after maintaining a steady uptrend since early March. The cryptocurrency has respected a rising channel on the weekly chart, yet the upper boundary of this structure now poses a significant technical challenge. This resistance zone has capped several rallies since late last year, including one in August when the price reversed near $134.

The medium-term trend for Litecoin remains upward, supported by the ascending trendline near $100. This level has consistently acted as a base, confirming buyers’ presence at lower levels. However, analysts caution that a rejection from the current resistance area could form a bearish double-top pattern on the weekly chart. If confirmed, this technical setup could pressure the market toward lower price zones, ending the recent phase of stability.

Key Support Zone Holds the Trendline

A decisive drop below the $100 neckline would mark a breakdown from the channel structure, triggering potential losses of about 35% to 40%. Technical projections place the next key support levels between $66 and $70, where historical accumulation zones exist. Some forecasts extend the downside to $50 if selling momentum intensifies after a failed retest of the $135–$140 barrier.

Source: TradingView

Market strategist Ali Martinez emphasized that a confirmed rejection at the current resistance could accelerate selling toward $50. Despite this outlook, Litecoin still shows resilience within its rising pattern, suggesting short-term buyers remain active. The coming weeks may determine whether the market sustains this trend or shifts toward a deeper retracement.

ETF Optimism Supports Sentiment

While technical indicators signal caution, fundamental optimism has surfaced following Canary Capital’s amended filing for a spot Litecoin ETF. Market participants view the move as a potential trigger for renewed demand once regulatory operations normalize after the U.S. government shutdown. The development could help sustain positive sentiment and delay any extended correction if investors respond favorably.

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