Litecoin (LTC) broke below a key ascending trendline that had capped its downside attempts since 2018, including times when it coincided with the macro bottoms.
The level previously absorbed sell-offs during the 2018 crypto winter, the March 2020 liquidity shock, and the 2022 tightening-driven downturn. Losing that floor alters Litecoin’s long-term structure, suggesting that sellers have regained control on higher timeframes.
LTC/USD two-week price chart. Source: TradingView
Macro Headwinds Worsen For Litecoin
The technical breakdown comes amid rising macro stress across risk assets. Global markets have been rattled by a sharp unwind in AI-linked equities, with investors reassessing stretched valuations after a crowded rally.
Nasdaq Composite daily chart. Source: TradingView
The pullback has spilt into crypto, which has increasingly traded as a high-beta extension of technology stocks over the past year.
At the same time, weaker-than-expected US jobs data has added to volatility.
Slowing payroll growth and rising fears of unemployment have fueled concerns about a late-cycle economic slowdown, prompting capital to rotate away from speculative assets and into cash and short-duration bonds.
“The number of Americans working multiple jobs hit a record 9.3 MILLION, surpassing peaks seen during the 2008 Financial Crisis and the 2020 Crisis,” wrote Global Markets Investor on X on Feb. 5, adding that “the job market is WEAK.”
US labor market divergence: Source: US Bureau of Labor Statistics
For cryptocurrencies like Litecoin, that environment has translated into thinner bids and faster downside moves.
LTC’s position below all major exponential moving averages reinforces the bearish tone, while momentum indicators remain soft. The two-week RSI is drifting toward oversold territory but has yet to signal exhaustion, leaving room for further declines before a durable base forms.
LTC/USD two-week price chart. Source: TradingView
If macro headwinds persist, Litecoin risks sliding toward the $50 psychological level, with a deeper pullback exposing the $36–$40 zone that marked pre-2021 accumulation. A recovery above the former trendline would be required to stabilize the structure.
Until then, Litecoin remains vulnerable to further losses amid fragile risk sentiment.
