Date: Sun, February 16, 2025 | 02:52 AM GMT
In the cryptocurrency market this week, major altcoins are showing signs of recovery after weeks of correction, as Bitcoin dominance has dropped by 1.11% over the past seven days.
Following this, Litecoin (LTC) is gaining strong momentum, surging 28% in the past week, fueled by growing speculation about a potential spot ETF approval.
This surge has brought LTC to a critical technical level, where traders are closely watching for a breakout.
Litecoin (LTC) Price Analysis
On the daily chart, Litecoin has shown a strong recovery from $80, which followed market-wide sell-offs triggered by concerns over tariffs announced by former U.S. President Donald Trump on February 3. However, supported by the 200-day and 100-day moving averages (MAs), LTC has rebounded sharply and is now trading around $135.
LTC is currently testing the descending trendline resistance of a long-term descending triangle formation. This level, near $135-$140, has been a critical supply zone for sellers in previous attempts.
If Litecoin breaks above this resistance with strong volume and a successful retest, the next major resistance levels to watch are:
- $147 – The first key level confirming an uptrend.
- $157 – $168 – Potential targets, representing a 24% rally from current levels.
The MACD (Moving Average Convergence Divergence) indicator is currently turning bullish, as the blue MACD line is crossing above the orange signal line, indicating a shift in momentum towards buyers. If this continues, it will add confidence to a potential breakout.
What If Litecoin Fails to Break Resistance?
On the downside, if LTC faces rejection at the resistance level, it could see a pullback toward the 100-day moving average for a retest of support.
Disclaimer: This article is for informational purposes only and should not be considered financial advice. Always do your research before making investment decisions.