Litecoin's recent performance is concerning, with the market facing numerous challenges. The latest data shows that the price of Litecoin has fallen by more than 3% in the past week, currently hovering around $115. More importantly, the daily volume has plummeted by nearly 30%, now at $487 million, highlighting a significant decline in market activity.

This wave of fall is mainly due to the slow progress of ETF approvals, which has affected investor confidence. Market sentiment indicators show that the current state is cautious, and traders generally have a wait-and-see attitude towards altcoins.

From a technical analysis perspective, Litecoin has fallen below the short-term moving average and is currently near a key support level. If it cannot return above $115.68, it is likely to further test the support at $113.61, which happens to be an important Fibonacci retracement level. If it falls below $113, $110 will become the next key defense line.

Various technical indicators are showing different signals. The Relative Strength Index (RSI) is in the neutral zone, while the MACD indicator has shown divergence, suggesting that upward momentum is weakening. In the short term, $116.1 is a key turning point: if it can break through effectively, it may bring new upward opportunities for Litecoin; conversely, it could trigger a new round of selling pressure.

Given the current market environment, investors should remain vigilant and closely monitor price trends and volume changes. It may be wise to maintain a wait-and-see attitude until a clear breakout or support failure is confirmed. At the same time, attention should also be paid to the overall cryptocurrency market trends and changes in the regulatory environment, as these factors may have a significant impact on the future movement of Litecoin.