Litecoin (LTC) has surged 15% in the past 24 hours, fueled by Bitcoin’s recovery following the latest Federal Open Market Committee (FOMC) meeting. With renewed investor enthusiasm, many are wondering whether this uptrend will sustain or if LTC will face a consolidation phase.
Key Reasons Behind Litecoin’s Price Surge
One of the main catalysts for Litecoin’s rally is the broader market sentiment post-FOMC. The Federal Reserve’s decision to pause interest rate cuts, keeping them steady at 4.25% to 4.5%, has reassured investors. This macroeconomic stability led to a Bitcoin price jump of 3% to $105,300, triggering gains across the altcoin market, including LTC’s impressive rise to $125.90.
Beyond macroeconomic factors, speculation surrounding a potential Litecoin Exchange-Traded Fund (ETF) has further boosted investor confidence. Bloomberg analyst Eric Balchunas noted that Litecoin’s ETF proposal has ticked all regulatory boxes, positioning it as a strong candidate for approval. This anticipation mirrors the bullish momentum seen in Bitcoin before the approval of spot BTC ETFs, which significantly impacted its price.
Additionally, on-chain metrics indicate increased investor activity. Data from Santiment shows Litecoin’s daily transactions exceeding $2.85 billion, alongside a surge of over 122,000 new wallet addresses joining the network in the past few days. The recent SEC request for public comments on the Canary Capital Litecoin ETF has further heightened optimism, reflecting growing institutional interest.
Key Litecoin Price Levels to Watch
Currently, Litecoin trades at $125.90 with a market capitalization of $9.5 billion. Trading volume has surged by 70% to $1.04 billion, highlighting strong investor participation. Despite this rally, LTC is still far from its all-time high of $412.96.
Technical analysis of the LTC/USDT chart shows the formation of a rounded-bottom pattern, a bullish signal indicating potential trend reversal. Key support levels to monitor are $109.06 and $99.36, while resistance levels stand at $135.94 and $162.12. A sustained breakout above resistance could push LTC toward a two-year high of $158.92, followed by $196.34 based on Fibonacci extensions. However, a decline below $109.06 may trigger a further drop to $99.36.
Also Read: Litecoin (LTC) Set for ETF Approval as Grayscale, CoinShares, and Canary Lead the Charge
Is Litecoin’s Uptrend Sustainable?
Litecoin’s recent price surge reflects renewed investor confidence driven by Bitcoin’s recovery, ETF speculation, and strong on-chain metrics. If these bullish signals hold, LTC could target new highs of $196.34. However, market volatility remains a key risk, and investors should carefully monitor support and resistance levels to navigate potential price swings effectively.