Litecoin (LTC), a heavyweight in the crypto world by market capitalization, has bucked the bearish trend dominating the cryptocurrency market in recent weeks. While major cryptocurrencies such as Bitcoin and Ethereum have stumbled, shedding over 5% of their value, Litecoin has proven to be resilient, holding its ground and even posting gains.
In the last two weeks, Litecoin has risen by 3.5%, with a notable 9.5% surge over the past week. Despite a slight retracement in the last 24 hours, with LTC now trading at $65.88, market analysts are eyeing the possibility of further growth.
Litecoin Poised For Further Gains?
One of the most notable voices in the conversation is crypto analyst ZAYK Charts, who shared his technical outlook on Litecoin via X (formerly Twitter). According to ZAYK, Litecoin is trading within a descending channel formation on its daily chart—a technical pattern often signaling an impending breakout.
A descending channel occurs when an asset’s price moves between downward-sloping parallel trendlines, indicating a potential reversal when the price breaches the upper boundary of the channel. If Litecoin successfully breaks out of this formation, ZAYK predicts it could aim for a target of $100, a significant jump from its current trading range.
This potential breakout, however, hinges on Litecoin gaining enough bullish momentum to push through its resistance levels, which remains a key focus for traders watching the charts.
Bullish Sentiment Grows Among Traders
Backing up the bullish outlook are key fundamental indicators suggesting rising interest in Litecoin. According to data from Coinglass, Litecoin’s Open Interest—an important metric that tracks the total number of outstanding derivative contracts like futures and options—has increased by 1% over recent weeks, now sitting at $243.96 million.
This uptick in Open Interest suggests growing trader confidence in Litecoin’s potential for further price appreciation. More traders are entering positions, betting on the possibility of a sustained upward trajectory.
Another indicator supporting this sentiment is Litecoin’s Spent Output Profit Ratio (SOPR), which measures whether investors are selling their assets at a profit or loss. Recent data from Glassnode shows that Litecoin’s SOPR has rebounded to 1.0 after briefly dipping below this level last month. A SOPR value of 1.0 indicates that, on average, LTC holders are breaking even on their sales—a sign that the market is stabilizing.
What’s Next for Litecoin?
The combination of technical analysis pointing to a potential breakout and the increase in Open Interest suggests Litecoin could be setting up for a significant move. Should Litecoin break out of its descending channel formation, the next target could be $100—a level not seen since early this year.
Also Read: Litecoin Faces 36% Decline As 45,000 Small Holders Exit – Will Recent Trends Signal A Bullish Turn?
However, for this rally to materialize, market momentum will need to stay on Litecoin’s side. The bullish sentiment among traders, coupled with a stabilizing SOPR, could provide the necessary support for LTC to break through its current resistance.
As always, crypto markets remain highly volatile, but Litecoin’s recent resilience in the face of broader market weakness has captured the attention of traders and analysts alike. All eyes are now on whether LTC can capitalize on this momentum and defy the broader market’s bearish trend.
Disclaimer: The information in this article is for general purposes only and does not constitute financial advice. The author’s views are personal and may not reflect the views of Chain Affairs. Before making any investment decisions, you should always conduct your own research. Chain Affairs is not responsible for any financial losses.
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