Litecoin [LTC] is attracting increased attention from institutional traders in light of the recent market volatility within the cryptocurrency sector.
Currently, LTC is trading at $125.29, marking a notable 12.86% price surge, despite a decline in trading volume over the past day. Given this breakout and the prevailing market sentiment surrounding Litecoin, the question arises: will this altcoin uphold its upward momentum?
Price Movement of Litecoin
Litecoin has been confined within a descending channel when observing the hourly chart, up until it broke above the $120.00 mark on its descending resistance trendline.
The breakout candle above this threshold indicated a robust uptrend momentum, as evidenced by the 12.86% surge in price.
If this momentum remains strong, LTC could potentially target the $129 resistance level in the short term, with an eye on $143 in the medium term.
Technical signals point towards a solid bullish momentum, with short-term, medium-term, and long-term moving averages all indicating a strong “Buy” signal based on TradingView data.
As per Cryptowaves, LTC’s 24-hour Relative Strength Index (RSI) was at 53 and had risen to 58 over the 4-hour timeframe, at the time of writing.
Market Sentiment and Insights from On-chain Analysis
Litecoin’s Open Interest has surged by 12.09% in the previous day. Current data shows a Long-short ratio of 2.19, implying a higher number of traders leaning towards buying LTC.
The 7-day exchange netflow ($33.14M) indicates minimal selling pressure, with the majority of investors currently in a profitable position, according to insights from IntoTheBlock.
Activities of Whales and Market Trends
According to Ali Martinez on X (previously known as Twitter), significant investors have accumulated 930,000 LTC in the last fortnight, signaling a strong belief in the long-term prospects despite market uncertainties.
With the likelihood of an LTC ETF approval on the rise, investors may be gearing up for a bullish surge in Litecoin, as reflected in the increasing Total Value Locked (TVL).
What Lies Ahead for LTC?
Litecoin needs to maintain its bullish trend above the descending channel to reach the $129 target and potentially beyond. Nonetheless, a drop below the crucial $120 resistance level could trigger a retracement towards $110.
With a Bitcoin correlation of 0.11, Litecoin demonstrates independence from BTC’s price movements. Hence, with its robust buying activity and accumulation by whales, LTC appears to be primed for a sustained upward trajectory in the long term.