Litecoin (LTC) is stabilizing at a crucial long-term support area of $55-$60. This is after the token has consolidated for quite some time.
According to analyst Erick Crypto, as of Tuesday, February 3, the area has continually defended the selling pressure, forming a strong support base. This has meant that the bear momentum is losing steam, and the chances of a gradual change in the token’s price are increasing.
Source: Erick Crypto X Post
If the base holds, the LTC could progress gradually to higher highs and higher lows. This process usually happens gradually, and traders need to be patient to benefit from these movements.
From a market point of view, the mid-term targets are around the $100 to $120 zone, while a macro expansion could reopen the $180 to $200 zone after an accumulation process and the improvement of the global market’s long-term sentiment dynamics.
Also Read: Litecoin (LTC) Momentum Weakens Below $73 as Bitcoin Range Limits Upside
RSI and MACD Signal Momentum Shift
According to TradingView, as of Tuesday, February 3, the price of LTC has a broader bearish formation, where the price is trending downwards from the $75/$78 range and is making a recent low at $56.
The sellers dominated the market with consecutive lower highs and lower lows. However, the recent candles show that the price is moving up towards $60.70, suggesting a relief move after oversold conditions.
Source: TradingView
The momentum indicators are suggesting stabilization. The RSI has recovered from its near-oversold levels and has moved up towards 44.
The MACD indicator has a negative slope, but the histogram has been rising, and the lines are trying to form a curve. This suggests weakening bearish momentum. It appears the price is not yet confirming the trend reversal.
Japan’s SBI VC Trade Expands Crypto Lending With Litecoin
Apart from this price movement, a Japanese crypto exchange named SBI VC Trade has also added a new lending option for users to lend their LTC and earn interest on it, according to the Litecoin Foundation as of Sunday, February 1.
This is not only a positive sign for LTC in terms of adoption in one of the world’s most regulated crypto environments, but it also indicates that institutions are becoming more comfortable with investing in Litecoin.
The update gives Litecoin a useful, yield-generating use case and bolsters its position in institution-grade finance. Experts have noted that Japanese exchanges tend to favor assets that have good liquidity, reliability, and regulatory compliance.
As compliant lending emerges as a domestic use case, the inclusion of Litecoin signals that it has moved beyond being a payments asset and into structured crypto finance in regulated global markets.
Also Read: Litecoin (LTC) Holds Above Key Support Zone Amid Growing Market Volatility
