Litecoin (LTC) Faces December 2024 Correction That Could Precede 45-60% Declines

Litecoin (LTC) looks poised to undergo a sharp correction in December 2024 after almost doubling its price since its year-to-date low of $49.90

Litecoin (LTC) had an impressive run in 2024, almost doubling in value from its year-to-date low of $49.90, established three months ago. However, as we approach December, technical and macroeconomic factors suggest that LTC may be poised for a sharp correction.

A Close Look At Litecoin’s Technical Picture

A glance at the LTC/USD daily chart reveals that the cryptocurrency has been trading within the confines of a symmetrical triangle for the past few months. Resistance is pegged at around $100, while support is situated near $66.

Despite several attempts to break out to the upside, Litecoin has consistently failed to cross above the psychological $100 level. Interestingly, the volume profile seems to be supporting the bearish case.

As Litecoin attempts to move higher, we can observe declining trading activity. This could indicate a lack of buying interest at current levels, increasing the likelihood of a pullback toward $66.12, the lower trendline of the triangle.

In other words, we can expect to see LTC’s price drop by 30% before reaching the lower support level. A breakdown below this level could result in a further drop toward $40, which is aligned with historical support levels from 2020.

On the other hand, if LTC manages to break out above the upper trendline, it could be setting its sights on $130. A close above this level would invalidate the bearish pattern and open up the possibility of a move toward $150.

Macroeconomic Factors To Drive LTC Price toward $125 in Early 2025

While December 2024 may pose challenges for Litecoin, the outlook for 2025 appears optimistic, thanks to external catalysts such as Donald Trump’s anticipated market-friendly policies and the potential launch of a Litecoin-focused exchange-traded fund (ETF).

Over the past year, there have been rumors circulating within the cryptocurrency community regarding the possibility of a Litecoin ETF. Now, it seems that these whispers may finally be coming to fruition.

According to recent reports, a registration statement has been filed with the U.S. Securities and Exchange Commission (SEC) for a spot LTC ETF. The proposed fund would hold Litecoin directly and track its daily net asset value based on the CoinDesk Litecoin Price Index (LTX).

This marks a critical step toward expanding institutional access to LTC investments, as the SEC has previously approved several physically backed Bitcoin ETFs and spot Ether ETFs.

These developments pave the way for further integration of Litecoin into mainstream financial products, which could significantly boost its adoption and liquidity in 2025.