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Key Takeaways:
- Litecoin is up 42.4% in a month, outperforming BTC and approaching key resistance zones.
- RSI and OBV indicate strong momentum, but a retracement may be due.
- A dip toward $100 could offer a solid buying opportunity for trend-following traders.
Litecoin [LTC] has posted an impressive 42.4% rally over the past month, fueled by widespread bullish sentiment across the cryptocurrency market. As Bitcoin [BTC] and Ethereum [ETH] climbed 14.6% and 56% respectively during the same period, investor confidence in altcoins surged — pushing the total altcoin market cap to $1.5 trillion, a 36% increase since June 20.
With Litecoin now testing key resistance zones, market participants are closely watching whether this momentum can persist — or if a short-term correction is due.
Strong Technical Support and Breakout Above $107
Litecoin’s rally has been technically supported by its bounce off the $79.88 level — the 61.8% Fibonacci retracement from its April–May run between $63 and $107. On July 19, LTC broke past the $107 resistance level on the daily chart, signaling a strong continuation of the bullish trend.
Currently, LTC is testing the 23.6% extension level at $117. Despite the Relative Strength Index (RSI) entering overbought territory, the absence of a bearish divergence suggests further upside may be possible in the near term.
On-Balance Volume Signals Sustained Demand
One of the most bullish signals comes from the On-Balance Volume (OBV), which has climbed steeply and is approaching its January highs. This surge in OBV indicates strong buying pressure, confirming that the rally has been backed by real volume — not just speculative momentum.
Such volume-driven price action typically supports continuation moves, especially when paired with bullish market sentiment across the board.
Key Resistance Levels to Watch: $127.6 and $134
The Fixed Range Volume Profile for LTC’s 2025 price action identifies $127.6 as the Point of Control (PoC), making it a critical resistance level in the short term. Above that, the Value Area High at $133.36 aligns closely with the 61.8% Fibonacci extension at $134 — forming a confluence of resistance that could be difficult to breach without a pullback.
Traders are advised not to short LTC prematurely, as momentum remains strong. However, given the extended move, a retracement to the $100–$105 zone would offer a healthier entry point for new long positions.
Litecoin’s explosive rally reflects growing confidence in the altcoin market, with both technical and volume indicators supporting the recent uptrend. Still, as LTC approaches strong resistance levels near $127 and $134, a consolidation or pullback may be necessary before further gains.
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
I’m a crypto enthusiast with a background in finance. I’m fascinated by the potential of crypto to disrupt traditional financial systems. I’m always on the lookout for new and innovative projects in the space. I believe that crypto has the potential to create a more equitable and inclusive financial system.
