Litecoin (LTC) Price Attempts Bullish Breakout toward $112 Catalyzed by Rising Demand from Short-term Holders

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As a seasoned researcher with a knack for spotting trends in the cryptosphere, I find myself intrigued by the recent surge of Litecoin (LTC). With my finger always on the pulse of this dynamic market, I have witnessed its journey since its inception and can attest to its resilience.

With large-cap altcoins currently dominating the crypto market rotation, Litecoin (LTC), the third largest cryptocurrency secured through Proof-of-Work (PoW), is showing signs of a bullish surge. This mid-sized altcoin, boasting a fully dilated market cap of approximately $6.4 billion, has seen an upward trend of more than 14% since last week, trading at around $76 on November 12 during the early New York trading session, with a 24-hour volatility of just 1.6%.

As per the most recent data from this report, the daily average trading volume of Litecoin’s market experienced a significant jump of approximately 111%, reaching around $1.74 billion. Given its substantial liquidity on prominent cryptocurrency exchanges, particularly Binance, it appears that Litecoin’s price is primed for additional growth in the short term due to its favorable position.

Midterm Target for Litecoin Price

Despite experiencing two halvings over the last six years, the price of Litecoin has persistently remained within a large triangular pattern on a larger scale. This trend emerged during the 2021 crypto market boom, where Litecoin didn’t perform as well compared to other cryptocurrencies, leading some to label it a ‘zombie altcoin’ as more eye-catching coins have come into play.

Despite some fluctuations over the past year, Litecoin’s price has consistently found strong support at approximately $59. This could potentially set the stage for an uptrend or bullish move in the coming weeks.

Furthermore, Litecoin’s weekly Relative Strength Index (RSI) has climbed above the 50% threshold once more since May of this year.

Looking at the technical perspective, the price of Litecoin has previously re-visited the bullish surge that started from a long-term descending logarithmic trend line, established in May 2021. Consequently, it appears that Litecoin’s price is targeting the significant level above $110, which aligns with the 0.786 weekly Fibonacci Retracement.

I currently hold Litecoin (LTC) and pondering if its price might surge vertically, similar to Ethereum (ETH). Both have a comparable structure.

— Roman the Paradoxed Prophet (@ProphetsSuite) November 12, 2024

Major Factors Fueling LTC Growth

The market for Litecoin has seen strong backing not only from individual investors but also larger institutions. Recent on-chain statistics show that there are approximately 7.7 million Litecoin owners in the network. As we reported earlier on Coinspeaker, the application for a Litecoin ETF by Canary Capital in the U.S. suggests growing institutional interest.

From data supplied by IntoTheBlock, it appears that the number of short-term Litecoin owners (STH) has grown by 31% over the past month. Historically, such an increase in Litecoin’s STH tends to precede a significant surge in its underlying value – suggesting potential for a bullish trend.

The balance held by short-term $LTC holders is moving up, increasing by 31% in the last month.

These sharp increases tend to occur quite regularly, often near price bottoms or just prior to significant surges in pricing.

— IntoTheBlock (@intotheblock) November 12, 2024

Given the anticipated pro-cryptocurrency leadership at the Securities and Exchange Commission (SEC) due to Donald Trump’s decisive win, there’s a higher chance that a Bitcoin (LTC) Exchange Traded Fund (ETF) will be approved by 2025.

As a crypto investor, I’ve been closely following the progress made by the Litecoin core developers. Their latest focus has been on making the network more secure and efficient for institutional funds and mainstream adoption. Notably, they’ve just launched version 0.21.4 to bolster essential security updates, which is an exciting development for us investors who believe in the potential of Litecoin.

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2024-11-12 18:06