NAIROBI (CoinChapter.com) — Litecoin (LTC) price surged past $116 today, breaking out of an ascending triangle pattern. The move comes amid renewed optimism in the crypto market, with traders eyeing a potential rally toward $126 or higher.
Litecoin Price Gains 8%, Signals Bullish Momentum
Litecoin’s price jumped over 8% on Monday, trading near $116 after bouncing off key support levels. Last week, LTC retested its 200-week Exponential Moving Average (EMA) at $86.22 before recovering above the $96.30 support level. The asset also broke past a descending trendline that had capped its price since March 2022, reinforcing bullish momentum.
LTC recently bounced from its 200-week Exponential Moving Average (EMA) at $86.22 and reclaimed support at $96.30. Additionally, it confirmed a breakout from a descending trendline that had suppressed price action since March 2022.
LTC/USD 1-day price chart. Source: TradingViewThe Relative Strength Index (RSI) on the daily chart stands at 56.23, showing growing bullish momentum above the neutral 50 level. Fibonacci extension levels suggest potential price targets at $154.58 (1.618 Fib), $187.65 (2.618 Fib), and $220.71 (3.618 Fib).
LTC long-to-short ratio chart. Source: CoinglassIf the uptrend continues, LTC could revisit its Dec. 5 high of $147.06. Market sentiment remains bullish, with Coinglass data showing Litecoin’s long-to-short ratio at 1.07, indicating more traders are positioning for further upside.
ETF Optimism and Market Sentiment Fuel Litecoin’s Rally
Beyond technical factors, speculation over a potential spot Litecoin exchange-traded fund (ETF) has fueled the recent rally. The U.S. Securities and Exchange Commission (SEC) recently acknowledged Canary Fund’s application to introduce a Litecoin ETF, increasing investor optimism. Prediction markets, including Polymarket, estimate an 81% chance of ETF approval by the end of 2025.
Litecoin ETF Approval Odds Rise to 53% on Polymarket. Source: PolymarketAdditionally, social media discussions point to rising bullish sentiment. X user XForceGlobal compared Litecoin’s trajectory to XRP, emphasizing its consistently higher lows as a sign of long-term accumulation. Carl Moon, another crypto trader, claimed Litecoin’s breakout from an ascending triangle could push its price toward $128.
Profit-Taking Could Slow Momentum
Despite the rally, on-chain metrics suggest caution. Santiment’s Network Realized Profit/Loss (NPL) indicator for Litecoin spiked from 1.39 million to 51.59 million between Thursday and Friday, signaling that holders are taking profits. This could increase selling pressure and slow the rally.
LTC Network Realized Profit/Loss chart. Source: SantimentHistorically, large NPL spikes often precede short-term corrections. If selling pressure builds, Litecoin may struggle to maintain its gains above $120, potentially leading to a retest of lower support levels.
Litecoin’s price breakout has reignited bullish sentiment, but traders should remain cautious amid increasing profit-taking. If buying pressure sustains, LTC could test higher resistance levels near $126-$147. However, a potential selloff may lead to a retest of key support levels before another leg up.
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