Litecoin (LTC) has experienced a strong 10% surge in the last 24 hours, igniting optimism among investors as it nears a crucial resistance level. The recent rally has seen LTC recover a substantial portion of the losses it sustained since January, bringing it closer to the $136 mark—a barrier that the altcoin has struggled to break for the past two months. As Litecoin inches toward this critical point, $337 million worth of LTC held by investors could soon turn profitable, should the price break through.
Key Resistance at $136: The Next Milestone for LTC
The significant investor interest around the $128-$139 range is highlighted by the In/Out of the Money Around Price (IOMAP) indicator. Around 2.66 million LTC, worth approximately $337 million, was purchased by investors within this price range, and many of these holders are awaiting a breakout above the $136 level to realize profits.
Should Litecoin successfully break the $136 resistance and turn it into support, it could signal the start of a more sustained upward movement. Analysts predict that such a breakthrough could push Litecoin toward the next resistance levels at $140 and $147, marking a continuation of the recent rally. The price action and investor sentiment suggest that the altcoin is on the verge of entering a potentially profitable phase.
Strong Support from Long-Term Holders
The resilience of long-term holders (LTHs) also plays a crucial role in Litecoin’s recovery. According to the Market Value to Realized Value (MVRV) indicator, LTHs are still in profit despite the recent price pullback, which is a promising sign for the altcoin’s stability. Historically, LTHs have supported price increases by holding through market downturns, and their continued confidence in Litecoin could provide the necessary foundation for sustained price growth.
Potential Risks: A Rejection at $136
However, the road to further gains is not without obstacles. Litecoin’s price has struggled to break through the $136 resistance for two months, and failure to do so could result in a pullback. If the altcoin faces rejection at this key level, it may fall back to its support zone around $117, invalidating the bullish outlook. Such a scenario could also reverse the recent gains, causing further declines.
Macroeconomic Factors and Institutional Interest
On a broader scale, macroeconomic factors are also in Litecoin’s favor. As reports suggest, Litecoin ETFs are highly likely to be approved by the SEC ahead of other altcoins, which could attract a fresh wave of institutional investment into the asset. This potential approval could provide the altcoin with the additional support needed to surpass critical resistance levels and push its price even higher.
Litecoin’s Current Price
At the time of writing, Litecoin is trading at $123.18, up 20.66% in the past week, with a market cap of $9.3 billion. Its 24-hour trading volume stands at $1.9 billion, reflecting strong interest and momentum in the market.
As Litecoin approaches the $136 resistance, all eyes are on whether it can break through and establish a new support level to unlock further profits. While the altcoin remains poised for a potential rally, the next few days will be crucial in determining whether the bullish outlook holds. Investors will be watching closely as Litecoin’s price action could set the tone for the next phase of its market cycle.
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