Currently, Litecoin [LTC] is being traded at $122, reflecting a 5.15% surge in value over the last 24 hours. In contrast, Bitcoin [BTC] and other major alternative cryptocurrencies such as Ethereum [ETH] are grappling with uncertain market conditions and price stagnancy.
Rumors surrounding the potential approval of an ETF for LTC are fueling excitement in the market, with the likelihood of a LTC ETF approval standing at 90% according to a report by a Bloomberg analyst.
LTC’s Technical Analysis and Potential Scenarios
An examination of Litecoin’s price movement on the 8-hour chart reveals that the altcoin has been consolidating within a bullish pennant formation, hinting at a probable upward surge.
Within this bullish pennant, LTC has been challenging the upper key horizontal resistance level, with its bullish trend signaling a breakout above the $130-$135 range.
Based on an analysis from World of Charts, shared on X (previously known as Twitter), it is speculated that the bulls could drive a breakout in price, propelling it towards the $150-$170 range in the short term, with a long-term target set at $250.
In the event of a rejection within this pattern, a retracement within the range might occur for LTC.
A potential price decline could see a retest of the lower support levels at $110-$100 following an unsuccessful breakout from the bullish pennant.
On-chain Metrics Displaying Conflicting Signals
Coinglass data indicates a 4.8% increase in LTC’s 24-hour Open Interest (OI) alongside a 24.61% decline in trading volume.
According to Intotheblock, whales currently hold 48% of LTC, with 84% of all holders in a profitable position, while the market sentiment remains predominantly optimistic.
Information from Santiment reveals a surge in investor optimism, with LTC’s social engagement rising from 100 to 128 within a week.
At the time of publication, LTC’s Long-to-Short Ratio remains above 1.5 across all timeframes as per Coinalyze statistics.
What Comes Next?
The decrease in trading volume over the past 24 hours suggests that only a limited number of traders are actively engaging in the buying or selling of Litecoin.
This could indicate that long-term investors are holding their positions, awaiting favorable price movements, or that traders are exercising caution and hesitancy in their trading activities.
Given that a significant portion of HODLers are currently in a profitable position, traders can anticipate less aggressive market activity as they monitor LTC’s next steps.
The upcoming trajectory of the altcoin is likely to be influenced by on-chain metrics, technical indicators, and the progress of the spot ETF in the following weeks.