Since August 2023, the price of Litecoin (LTC) has established a strong macro support level above $59, indicating that a bullish breakout is imminent. This mid-cap altcoin has a fully diluted valuation (FDV) of about $6.4 billion, with its average daily trading volume surging by 107% during the early New York trading session on Tuesday, November 12, hovering around $1.73 billion.
Following a 14% increase last week, the price of Litecoin has indicated that a bullish rebound is imminent. Furthermore, the weekly relative strength index (RSI) has surged above 50% for the first time since May of this year.
From a technical perspective, the LTC price aims for the next liquidity range between $100 and $112, which aligns with the 0.786 and 1-week Fibonacci retracement levels.
Main reasons for the imminent rise in Litecoin price
As a top altcoin secured through the proof-of-work (PoW) consensus method, the Litecoin network has attracted more cryptocurrency enthusiasts seeking to mine and invest. According to the latest on-chain data, the Litecoin network has over 7.7 million holders.
Market data provided by IntoTheBlock indicates that the balance of Litecoin held by short-term holders has surged by 31% over the past month. Notably, the open interest-weighted funding rate for Litecoin has recently spiked to a multi-month high, suggesting that more investors are anticipating a bullish breakout.
Additionally, in the current macro bull market, more institutional investors are viewing Litecoin as an alternative currency to Bitcoin.
As previously reported by Coinpedia, Litecoin is one of the altcoins that the next government may soon approve for a spot ETF in the U.S.
