Litecoin Price Forecast: LTC struggles below resistance, bearish bets hit monthly high 

Litecoin (LTC) is showing signs of weakness on Thursday as it fails to break above its key resistance level. The price action emerges as a classic dead-cat bounce pattern, which favors bears. The technical outlook suggests that sidelined traders looking to short LTC could consider entry points between $93 and $95 in anticipation of the price resuming its downtrend. Additionally, the bearish sentiment is building among traders, with short positions in the derivatives market reaching their highest point in over a month.

Litecoin's bearish bets reach the highest level in over a month 

According to Coinglass's data, the long-to-short ratio of Litecoin reads 0.82. This ratio, below one, reflects bearish sentiment in the markets, as more traders are betting on the asset price to fall.

LTC long-to-short ratio chart. Source: Coinglass

Litecoin Price Forecast: Dead-cat bounce scenario develops

Litecoin price broke and closed below its ascending trendline (drawn by connecting multiple lows since early April) and its 200-day Exponential Moving Average at $93.30 on May 30 and declined 8.2% until June 5. However, it had a short-term price recovery in the next 5 days and retested the 200-day EMA at $93.30. On Wednesday, LTC experienced a dead-cat bounce scenario—a brief price increase within a broader downtrend—facing rejection from the 200-day EMA level at $93.30. This level roughly coincides with the 50% price retracement level at $95.18, making these levels a crucial reversal zone. At the time of writing on Thursday, it edges slightly at around $91.25.

Sidelined investors looking to short LTC can do so between the $93.30 and $95.18 ranges, with the stop-loss set slightly above its weekly resistance at $96.30.

If LTC faces correction from the levels mentioned above, it could extend the decline to retest its Saturday low of $83.31. A successful close below this would extend the losses to retest the next weekly support level at $77.19.

The Relative Strength Index (RSI) on the daily chart hovers around the neutral level of 50, indicating indecisiveness among traders. For the dead-cat bounce scenario to play, the RSI must move below its neutral level of 50 for the bearish momentum to be sustained.

LTC/USDT daily chart

However, if the Litecoin price closes above the weekly resistance at $96.30, the bearish thesis would be invalidated. Such a scenario could extend the rally toward the May 10 high of $107.05.