Litecoin (LTC) is down more than 12% in the last 24 hours, with its price trading around $100 and its market cap dropping to $7.5 billion. The sharp decline comes as selling pressure intensifies, pushing LTC’s RSI into oversold territory and Chaikin Money Flow (CMF) deeper into negative levels.

If the downtrend continues, LTC could test $92.5 support and potentially drop to $80, its lowest price since November 2024. However, if momentum shifts, LTC could attempt a recovery, breaking back above $100 and targeting resistance levels at $106, $111, and possibly $119.

LTC RSI Is Currently At Oversold Levels

Litecoin Relative Strength Index (RSI) has dropped to 26.7, a sharp decline from 57.1 just two days ago. This steep fall indicates that LTC has entered oversold territory, suggesting intense selling pressure.

Such a rapid drop often reflects panic selling or a strong bearish trend, leaving LTC vulnerable to further downside unless buyers step in.

However, an RSI this low also signals that the asset may be nearing a potential short-term reversal, as oversold conditions often lead to relief bounces.

RSI is a momentum indicator that ranges from 0 to 100, measuring the strength of recent price movements. Readings above 70 indicate overbought conditions, where assets are likely to face selling pressure, while readings below 30 suggest oversold conditions, where buying opportunities may emerge.

With LTC’s RSI now at 26.7, it is deep in oversold territory, increasing the chances of a short-term bounce.

However, if bearish momentum persists and RSI continues falling, Litecoin could struggle to find support and extend its losses before any recovery attempt.

Litecoin CMF Fell Below -0.20

Litecoin’s Chaikin Money Flow (CMF) is currently at -0.21, down from 0.03 just two days ago, indicating a significant shift in capital flow. Earlier, CMF briefly dropped to -0.26, its lowest level since mid-February, reinforcing bearish sentiment.

A declining CMF suggests that selling pressure is increasing, with more capital flowing out of LTC than into it.

This trend signals that investors are pulling liquidity from Litecoin, making it difficult for the price to sustain any short-term rebounds.

CMF measures buying and selling pressure by analyzing volume and price movements ranging from -1 to 1. Positive values indicate accumulation, meaning more money is flowing into an asset, while negative values suggest distribution and increased selling pressure.

With LTC’s CMF now at -0.21, sellers remain in control, and unless buying volume returns, LTC could struggle to find support.

The recent drop to -0.26 shows that capital outflows are reaching extreme levels, increasing the risk of further downside unless sentiment shifts.

Will Litecoin Fall Below $90 Soon?

If Litecoin’s downtrend continues, the price could test the $92.5 support level, a key zone that has previously held buyers. If this level is lost, LTC could drop as low as $80, marking its lowest price since November 2024.

With momentum indicators like RSI and CMF showing bearish pressure, further declines remain a possibility unless buyers step in to defend support.

However, if LTC reverses its trend, it could regain momentum and push above $100, with $106 as the first major resistance level.

A breakout above this could lead to a test of $111, and if bullish momentum strengthens, LTC could rally toward $119.

El Salvador purchased five Bitcoins today, and President Bukele claimed that the country doesn’t plan to stop in the future. However, the government signed an agreement with the IMF mandating that the public sector can no longer voluntarily purchase BTC.

Some community members have speculated that the agreement includes some extension period that the public isn’t aware of. Otherwise, this agreement and the $1.4 billion in associated loans could blow up in everyone’s face.

El Salvador Keeps Buying Bitcoin

Since El Salvador made Bitcoin legal tender in 2021, the Central American nation has become a major BTC holder. However, after years of a combative relationship with international financial institutions, the IMF attempted to soften its anti-Bitcoin policies last October.

El Salvador agreed to amend its laws, but it has continued stockpiling the asset since. Specifically, the IMF’s technical memorandum of understanding includes a clause that prohibits the voluntary accumulation of Bitcoin by the public sector.

Additionally, the agreement restricts the public sector from issuing any debt or tokenized instruments indexed to or denominated in Bitcoin.

However, the El Salvador government continues to purchase 1 BTC per day as part of a long-term strategy to stockpile the asset. Today, it acquired five Bitcoins, further contradicting this directive.

Samson Mow, an influential community figure, has been following a December agreement between El Salvador and the IMF. Today, the IMF published additional commentary, claiming that El Salvador was neither allowed to purchase nor mine Bitcoin.

“If there is a loophole for continued buying, I didn’t find it in the document. If the plan is to just outright defy the IMF, I don’t think that is good for the additional loans, or to present an image of a serious stable country,” wrote Samson Mow.

However, President Bukele rejected these assertions.

“This all stops in April, this all stops in June, this all stops in December! No, it’s not stopping. If it didn’t stop when the world ostracized us and most ‘bitcoiners’ abandoned us, it won’t stop now, and it won’t stop in the future,” Bukele claimed on X (formerly Twitter).

On one hand, the country has plenty of reasons not to capitulate to the IMF. El Salvador has used Bitcoin to lead broader societal transformations, fostering a domestic community and using ample geothermal energy to create massive mining operations.

Abandoning these efforts would severely curtail the country’s economic independence.

However, where does this aggressive stance leave the IMF agreement? El Salvador allegedly consented to stop buying Bitcoin so it could receive $1.4 billion in loans. What happens to that money or any future trade deals? Is Bukele’s activity prohibited or not?

There are many questions still in the air. It’s possible that the IMF gave El Salvador a few extra months to buy Bitcoin, and Bukele is maintaining his outward bullishness until then.

Yet, these concerns remain unanswered and further regulatory clarification might be needed down the line.

TRUMP meme coin plummeted 20% on Tuesday, with its market cap falling to around $2.5 billion and trading volume dropping more than 50% over the same period. The sharp decline follows a failed attempt to sustain its rally after the US crypto strategic reserve announcement, reinforcing bearish sentiment.

With key support at $11, TRUMP risks trading below this level for the first time since its launch if selling pressure continues. However, the upcoming White House Crypto Summit on March 7 could act as a potential catalyst for a rebound, with a breakout above $17.47 potentially sending TRUMP toward $20.7 or even $24.5.

TRUMP RSI Is Back To Neutral After Surging To Overbought Levels

The Relative Strength Index (RSI) for TRUMP has dropped to 40.1, a steep decline from 74.7 just two days ago, reflecting a significant shift in momentum as Donald Trump confirmed tariffs on products from Mexico, Canada, and China.

This rapid fall indicates that TRUMP has moved out of the overbought territory, where bullish pressure was dominant, and is now approaching lower levels that suggest weakening demand.

Given that TRUMP is currently trading very close to its historical lowest levels, the declining RSI suggests that sellers have taken control, and the asset is struggling to regain upward momentum. If the downtrend continues, TRUMP could remain under pressure, potentially testing new lows unless buyers step in to support the price.

RSI is a momentum oscillator that ranges from 0 to 100, with values above 70 indicating overbought conditions and below 30 signaling oversold territory.

When an asset’s RSI drops toward 30, it suggests that selling may be overextended, increasing the probability of a price rebound. At 40.1, TRUMP is still above oversold conditions, but the current downtrend places it in a precarious position.

If RSI continues to fall and breaks below 30, it could signal further downside, potentially driving TRUMP to new historical lows. However, if RSI stabilizes or rebounds from these levels, it may indicate a period of consolidation before any potential recovery.

BBTrend Shows TRUMP Has Had a Hard Time Building a Strong Uptrend

The BBTrend indicator for TRUMP is currently at -6.18 and has been steadily declining in the last hours since yesterday, signaling increasing bearish momentum.

This drop follows a brief attempt at bullish strength when BBTrend touched 3.25 two days ago, but that move quickly reversed as selling pressure took over.

TRUMP has struggled to build sustained upward momentum. Its highest BBTrend reading in recent weeks was only 12.4 on February 18, followed by a much lower peak of 3.38 on February 25. This pattern suggests that each bullish attempt has been weaker than the previous one, reinforcing the difficulty of maintaining an uptrend.

BBTrend (Bollinger Band Trend) measures trend strength and direction using price volatility within the Bollinger Bands. Positive values indicate growing bullish momentum, while negative values suggest an increasing downtrend.

With BBTrend now at -6.18 and continuing to decline, TRUMP remains in a bearish phase, struggling to find stability.

The consistent failure to sustain positive momentum since mid-February suggests that buyers have been unable to build strength, keeping TRUMP vulnerable to further downside unless the trend reverses soon.

Will TRUMP Benefit From the White House Crypto Summit?

TRUMP, like many other coins, surged following the U.S. crypto strategic reserve announcement, but the rally didn’t last long as it quickly entered a sharp correction.

The TRUMP meme coin is currently down 20% in just one day, erasing much of its recent gains and reinforcing bearish sentiment in the market. A critical support level now sits at $11, and if it is lost, TRUMP could drop below this level for the first time since its launch day.

With such a steep decline in a short period, sellers remain in control, and the price action suggests further downside could be possible if demand does not return soon.

However, TRUMP could find renewed momentum with the upcoming first White House Crypto Summit on March 7, which could serve as a catalyst for a potential recovery.

If an uptrend materializes, the first key level to watch is $17.47. A breakout above this resistance could send it rallying toward $20.7.

If bullish momentum strengthens further, the price could even test $24.5, marking an almost 100% upside from current levels.