Is Litecoin (LTC) Ready for a Major Breakout? Analyst Eyes $300 Target.
Litecoin (LTC) has seen little price growth over the past year, rising just 5%, while Bitcoin surged by 139% in the same period. Litecoin’s market cap has also taken a hit, dropping 30% to $4.3 billion. This puts it behind Bitcoin Cash (BCH) and Dogecoin (DOGE).
LINK/USD price chart. Source: CoinMarketCap
However, Litecoin’s price increased modestly by 3.8% over the past week, rising to $67.71, reflecting a market recovery triggered by the Federal Reserve’s interest rate reductions.
Litecoin’s Role in High-Value Transactions Remains Strong
According to IntoTheBlock, Litecoin processed $21.82 billion in transactions over $100,000 in the past seven days. This activity makes up more than half of its market cap, highlighting its continued importance for major transactions despite recent price struggles.
User engagement remains steady, with 368,000 daily active users, and Santiment data shows over 8.08 million non-empty wallets, reflecting continued interest in the token. However, only 27% of holders are currently making a profit at the current price, while 67% are in the red, which may explain the cautious market sentiment.
Litecoin real volume chart. Source: Messari
However, Litecoin’s trading volume has seen a notable decline. As of Sept. 23, the real trading volume had dropped to $500 million, a decrease from the $4.97 billion recorded in April, suggesting reduced short-term activity in the market.
Will The Token Break Out?
As of Sept. 26, 2024, Litecoin is trading at $67.20. It has been stuck in a descending channel since March, but it looks like it might finally be breaking out.
LTC/USD 1-day price chart. Source: TradingView
On the daily chart, Litecoin’s price remains within a narrow range between the 0.618 Fibonacci retracement level at $69.23 and the support level at $65.36. The 50-day and 200-day exponential moving averages (EMAs) have converged near $65.31 and $71.52, marking a potential inflection point if the price moves beyond these levels.
On the daily chart, the price is moving between the 0.618 Fibonacci level at $69.23 and support at $65.36, keeping it in a tight range. The 50-day and 200-day EMAs have converged around $65.31 and $71.52, signaling a key area to watch.
If Litecoin moves above the 200-day EMA, it could target the $80.06 level. But a drop below $65.36 may bring more selling, with support at $55.73.
The Relative Strength Index (RSI) is currently at 57.52, suggesting that there is room for further upward movement before reaching overbought levels.
Pseudo Analyst predicts litecoin price to $300. Source: The Mental Trader/X
Crypto analyst The Mental Trader shared his take on Litecoin’s price. He noted that the price is nearing a major weekly trendline. If it holds, he sees a chance to buy, aiming for a range of $300 to $377. However, he warned that breaking the trendline could trigger a drop, with targets between $22 and $19.
The road to $300 depends on whether Litecoin can break through resistance levels and maintain upward momentum. While it’s a tough target, it’s still possible if market conditions align.
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