Litecoin Teeters Amid Trump Tariff Shock, Bullish Setup Offers Last Hope

NOIDA (CoinChapter.com) — Litecoin (LTC) price extended its decline over the weekend, falling below the $83 mark as traders responded to growing macroeconomic pressure. The drop reflects broader unease across both traditional and crypto markets, triggered in part by renewed trade war rhetoric out of Washington.

On March 31, President Donald Trump escalated his tariff stance, stating he would impose reciprocal tariffs “on all countries,” not just those with significant trade surpluses against the U.S. The administration plans to launch these sweeping tariffs on April 2, formally termed “Liberation Day”—as part of what Trump called an “economic sovereignty restoration plan.”

The reaction was immediate. U.S. equities slid sharply on Monday, with the S&P 500 and Nasdaq Composite both hitting six-month lows. Investors dumped risk assets, and even Bitcoin saw intraday volatility as fear of retaliatory trade measures from China and the EU resurfaced.

Safe-haven assets like gold surged to record highs, while the dollar recorded its worst monthly performance since Nov. 2022. Litecoin, already showing signs of technical weakness, came under additional pressure as liquidity tightened and capital rotated out of mid-cap altcoins. The timing of this breakdown, alongside a major policy pivot in global trade, reinforces bearish sentiment around LTC price in the short term.

LTC Weekly Chart Flashes Bearish Breakdown as Bulls Retreat

Litecoin’s weekly chart shows a clear invalidation of a previously bullish flag structure, with price now trading well below the lower trendline of the pattern. That failed breakout removed the earlier upside target and flipped it into a projected downside move near $50.8, based on the height of the flagpole. This invalidation suggests bullish momentum has completely faded, and the crypto asset’s price could enter a deeper corrective phase.

LTC also broke beneath an ascending parallel channel that had been in place since late 2023. That breakdown further reinforces bearish pressure, setting up a second potential downside target near $70.6, which aligns with the 0.236 Fibonacci level from the July 2023 low to the January 2025 high. The confluence of this breakdown with a failed bullish setup paints a technically negative picture for Litecoin, especially if broader risk sentiment continues to deteriorate.

There is, however, a key support zone between $86 and $81, marked by the 0.382 Fib retracement. This zone acted as support for most of 2023 and could now serve as a battleground for bulls attempting to defend the trend. The volume profile also shows increased selling pressure during the recent rejection, indicating that bears remain in control. If Litecoin fails to hold this support range, a move toward $70 becomes increasingly likely. Further breakdowns from there would make $50.8 a valid technical target heading into Q2.

Meanwhile, a rebound from here would see LTC price face resistance near $90, where the 100-week (blue) and 200-week (green) EMA trendlines form a resistance confluence. Breaking above this resistance could help Litecoin price target the resistance near $102, where bulls would try to re-enter the channel pattern. Yet, LTC price has a lot of hurdles to cross before turning its current price action bullish.

Falling Wedge Pattern Emerges, But Fortunes Remain Bearish For Now

The daily chart for Litecoin shows the development of a falling wedge pattern—typically considered a bullish reversal setup when confirmed with a breakout above the upper trendline. The pattern began forming in early Feb. 2025 after LTC topped out near $138. Since then, the price has made a series of lower highs and lower lows, respecting the narrowing boundaries of the wedge. Volume has also declined throughout the formation, matching textbook characteristics of this setup.

Despite the bullish potential, the structure remains incomplete. Litecoin continues to post lower highs, a clear sign that buyers are not yet in control. The lower boundary of the wedge is currently being tested, but without a strong impulse, a breakout remains unlikely in the near term. However, even a short-term relief rally could push LTC toward the upper trendline of the wedge, which currently aligns with the $96 level. That would represent a roughly 15% move from current prices—significant in the context of a broader downtrend.

If bulls do manage a breakout, the target would be calculated by measuring the height of the wedge at its thickest point and projecting it upward from the breakout zone. That gives a theoretical price objective near $138, matching the Feb. 2025 high. Until then, the pattern remains just a possibility, not a signal. Bears remain in control, and without a breakout, the wedge could simply be a pause before another leg down.