Since August 2023, Litecoin (LTC) has consistently maintained a strong macro support level above $59. This stability has set the stage for a potential bullish breakout in the coming days. As a mid-cap altcoin with a fully diluted valuation (FDV) estimated at around $6.4 billion, Litecoin has captured the attention of investors and traders alike. On Tuesday, November 12, during the early New York session, Litecoin’s daily average traded volume surged by 107%, reaching approximately $1.73 billion. This significant uptick indicates a growing interest in the cryptocurrency.
Recent Market Momentum and Technical Indicators
Following a remarkable 14% increase last week, Litecoin’s price has signaled a potential bullish rebound. One of the key technical indicators, the Relative Strength Index (RSI), has climbed above the 50% mark for the first time since May of this year. This upward momentum suggests that Litecoin is gaining strength and could be on the verge of a significant price movement.
From a technical analysis perspective, Litecoin is targeting the next liquidity range between $100 and $112. This range aligns with the 0.786 and 1 weekly Fibonacci Retracement levels, indicating a potential area of interest for traders and investors seeking to capitalize on the price movement.
Top Reasons Why Litecoin Price Will Gain Bullish Momentum Soon
Growing Network and Investor Interest
Litecoin, a leading altcoin secured through the proof-of-work (PoW) consensus mechanism, continues to attract more crypto enthusiasts who are interested in mining and investing. Recent data reveals that the Litecoin network boasts over 7.7 million holders, reflecting its growing popularity among cryptocurrency investors.
According to market insights from IntoTheBlock, the balance held by short-term Litecoin holders has increased by 31% over the past month. Such spikes in holdings are typically observed around market bottoms or before significant price surges, indicating a potential bullish trend.
Institutional Interest and Potential ETF Approval
Institutional investors have also been eyeing Litecoin as a viable alternative to Bitcoin, particularly in the context of the ongoing macro bull market. The anticipation of Litecoin’s bullish breakout is further fueled by the recent spike in Open Interest-weighted funding rates, which have reached multi-month highs.
As previously reported by Coinpedia, Litecoin is among the altcoins that could soon receive approval for a spot ETF in the United States. Such an approval would likely enhance Litecoin’s visibility and credibility in the broader financial markets, potentially attracting even more institutional investment.
Conclusion
In summary, Litecoin is positioned for a potential bullish breakout, driven by strong technical indicators, growing investor interest, and the possibility of regulatory advancements. As the cryptocurrency market continues to evolve, Litecoin remains a key player to watch, especially for those seeking to diversify their crypto portfolio.
