Recently, the market trend of Litecoin (LTC) has attracted wide attention from investors. From the technical perspective of the daily chart, LTC failed to hold above the $120 level and subsequently experienced a significant pullback. At yesterday's close, the candlestick chart showed a long wick candle turning bearish, which is often regarded as a potential top signal.

Investors should be wary of the large amount of sell orders that have appeared at high levels. Combined with the current market environment and the timing of recent positive news, this may indicate that some large players are taking the opportunity to reduce their holdings. This kind of "positive news selling" behavior is not uncommon in the cryptocurrency market, but it should still be approached with caution.

Currently, LTC has broken below the key support level of 120 USD. From a technical analysis perspective, the support strength below is weak, and it may face further downside risk in the short term.

For traders, if LTC fails to break through $120 during the rebound, consider shorting in the $118-$120 range. The initial target price can focus on the $113-$115 range. If it strongly breaks below this area, then the $110-$108 range will become the next important support level.

The current cryptocurrency market is in a volatile period, influenced by multiple factors, including but not limited to the IPOs of cryptocurrency-related stocks, new regulations on stablecoins in Hong Kong, and token airdrop activities from some exchanges. At the same time, macroeconomic factors such as news about increased tariffs in the United States may also impact market sentiment. Investors need to consider these factors comprehensively and manage risks when making trading decisions.