As the cryptocurrency market experiences a subtle rebound in the initial days of 2025, Litecoin (LTC) emerges as a noteworthy player. Known for its robust Proof-of-Work (PoW) consensus mechanism, this veteran altcoin is poised for further growth. With a fully diluted market cap hovering around $8.9 billion and a daily trading volume averaging approximately $575 million, Litecoin has demonstrated a promising 8 percent increase over the past two days. On Thursday, January 2, during the mid-London session, it traded at approximately $105.8.
What Lies Ahead for Litecoin Price?
Following a commendable 54 percent rise in the fourth quarter, Litecoin’s price seems primed to challenge its all-time high. On a weekly scale, Litecoin’s price has been retesting a significant macro bullish breakout, maintaining a solid support level above $100. This consistent upward trend has been apparent since late November 2024, after hitting a low point in August. This ongoing bullish wave experienced a 40% correction, signaling a robust market sentiment.
In the short term, the direction of LTC price remains uncertain, with bearish sentiments currently prevailing. Over the past month, Litecoin has been charting lower highs and lower lows, consistently closing below the 50-day Moving Average (MA). However, if the altcoin manages to close consistently above $129, short-term traders might witness a potential bullish breakout.
Fundamental Outlook
The Litecoin network has evolved into a dynamic blockchain ecosystem, boasting over 7.8 million on-chain users and facilitating more than 283,000 transactions since its inception. In 2024 alone, the network processed over 92 million transactions, showcasing a remarkable 38 percent year-over-year growth. With its speedy transactions and minimal fees—under $0.01 per transaction—Litecoin is increasingly favored for cross-border payments.
The ongoing mainstream adoption by institutional investors, underscored by the filing of several spot LTC ETFs last year, positions Litecoin favorably for sustained growth. As the cryptocurrency landscape continues to evolve, Litecoin’s established infrastructure and increasing utility make it a promising contender for the future.
