Litecoin Slides 14% as Geopolitical Tensions Rattle Crypto Markets

Litecoin (LTC) is under pressure, dropping 4.3% over the past week and over 14% in the past 30 days, as escalating geopolitical tensions drive a broader crypto market sell-off. The decline follows Israel’s military strike on Iran, aimed at disrupting its nuclear and missile programs. Iran responded with missile attacks, sparking global market volatility and wiping out more than $150 billion in total cryptocurrency market capitalization.

LTC briefly rebounded above $86 after the initial drop but failed to sustain upward momentum. It currently trades around $85.13, with significant resistance near $97.80, aligning with the 23.6% Fibonacci retracement level based on CoinDesk Research data. Technical indicators suggest weak momentum, with the Relative Strength Index (RSI) sitting at 43.46 and the MACD histogram remaining flat—signals typically associated with consolidation rather than breakout potential.

Trading volume also paints a cautious picture. After an initial plunge, LTC’s volume dropped 42%. A brief surge on Friday pushed prices above $85.90, but the move was met with profit-taking, bringing the coin back to $85.

Despite bearish price action, optimism remains around the potential launch of a spot Litecoin ETF. Bloomberg ETF analysts Eric Balchunas and James Seyffart recently placed a 90% probability on approval, which could serve as a major catalyst for LTC if confirmed.

Investors are now closely watching for signs of stabilization amid ongoing geopolitical risks and macro uncertainty. Until a clear breakout or stronger institutional trigger emerges, Litecoin may remain range-bound with limited upside in the near term.