Since August 2023, Litecoin (LTC) has been establishing a robust macro support level above the $59 mark, signaling potential bullish momentum in the near future. As a mid-cap altcoin, Litecoin has an impressive fully diluted valuation (FDV) of approximately $6.4 billion. The recent market activity is a testament to its growing influence, with the daily average traded volume soaring by 107 percent, reaching about $1.73 billion during the early New York session on Tuesday, November 12.
Technical Indicators Suggest Imminent Bullish Rebound for Litecoin
Following a significant 14 percent surge last week, Litecoin’s price is on the cusp of a notable bullish rebound. The weekly Relative Strength Index (RSI) has climbed above the 50 percent threshold for the first time since May of this year, indicating growing investor confidence. From a technical perspective, Litecoin’s price is targeting the next liquidity range, set between $100 and $112. This range aligns with the 0.786 and 1 weekly Fibonacci Retracement levels, offering potential for further upward movement.
Top Reasons Why Litecoin Price Will Gain Bullish Momentum Soon
As a leading altcoin secured by the proof-of-work (PoW) consensus mechanism, Litecoin continues to attract a vast number of crypto enthusiasts interested in mining and investment. The latest on-chain data reveals that the Litecoin network boasts over 7.7 million holders, showcasing its widespread adoption and appeal.
Market data from IntoTheBlock highlights a 31 percent increase in the Litecoin balance held by short-term holders over the past month. Such spikes are often observed around market bottoms or just before significant price increases, suggesting that the current market dynamics are favorable for a bullish breakout.
Institutional Interest and Market Dynamics
In recent months, institutional investors have shown heightened interest in Litecoin as a viable alternative to Bitcoin, particularly in the ongoing macro bull market. This interest is further fueled by the anticipation of potential regulatory approvals. As previously reported by Coinpedia, Litecoin is among the altcoins that could potentially receive approval for a spot ETF in the United States, contingent upon the next administrative changes.
The growing institutional interest, coupled with favorable technical indicators and increased market activity, positions Litecoin as a strong contender for significant price growth in the near term. As the market evolves, keeping an eye on these developments will be crucial for investors looking to capitalize on this bullish momentum.
