The price of Litecoin (LTC) jumped over 4% on Friday, exceeding $64 as the broader crypto market saw renewed optimism. LTC rallied alongside Bitcoin breaching $30,000, with trading volumes on major exchanges reaching $370 million.
Keypoints
- Litecoin (LTC) price jumped over 4% on Friday to above $64 amid positive sentiment as Bitcoin rose back above $30k.
- LTC trading volume hit $370 million as the crypto market cap exceeded $1.17 trillion.
- Potential catalysts include growing optimism around a Bitcoin spot ETF and the SEC dropping charges against Ripple executives.
- Litecoin hashrate reaching new highs and bullish on-chain metrics have also set the stage for further gains.
- If upward momentum continues, LTC could retest the psychological $100 level and hit new 2023 highs.
- On-chain data shows Litecoin long-term holder inflows have spiked to 2-year highs since early October.
- This suggests long-term investors are accumulating LTC in anticipation of a price recovery rally.
- Historically when holder inflows pass 400k LTC, prices rise at least 25% within 20-30 days, meaning LTC could soon hit $76.
Several factors appear to be driving positive sentiment around Litecoin lately. Growing momentum around a potential Bitcoin spot ETF and bullish on-chain metrics have primed LTC for further gains.
Notably, data shows Litecoin long-term holder inflows have spiked to 2-year highs since early October. This suggests major investors are stepping up accumulation, taking advantage of the extended bear market to stack LTC in expectation of the next rally.
On three previous occasions when long-term holder inflows passed 400k LTC, prices proceeded to climb at least 25% within the next month. Given the latest inflow spike, analysts say LTC could soon revisit the $76 level if momentum holds.
However, exchange order books illustrate short-term traders remain cautious, with sell orders exceeding buy orders by over 600k LTC. To confirm a sustainable uptrend, these traders will need to be convinced by the growing long-term investor confidence.
For now, LTC remains locked in a narrow trading range between $61-65. The key test will be whether growing accumulation can propel LTC to decisively break above the psychological resistance at $65.
If bulls can flip that into support, it paves the way for Litecoin to reclaim $75 in the near-term. From there, a push back toward 2022 highs at $100 and beyond comes into play if positive sentiment feeds through broader crypto markets.
But failure to breach key overhead resistance could see bears take control and validate short-term sellers. In that case, LTC may retreat to establish a new trading range, likely between $50-60.
As the longest-running major altcoin, Litecoin often amplifies Bitcoin’s price moves. If the tentative optimism around BTC continues, LTC has strong prospects to rally higher after lagging the market recently. But its fate ultimately depends on buyers overcoming skeptical short-term traders.
