Litecoin (LTC) has recently shown a significant bullish shift, defying the sluggish trend in the broader cryptocurrency market. Over the past five days, LTC has posted consecutive green candles, rising from $56.89 to $69—a 21.55% increase. This move contrasts with the general sideways trading seen among other major altcoins and Bitcoin.
Over the last three months, LTC has followed a correction trend within a wedge pattern on the daily chart. This pattern saw the price drop nearly 50%, from $112.8 down to $56.86. However, a recent turnaround from the lower trendline and a key support level around $57.7 has driven the price up to $69, with Litecoin’s market cap increasing to $5.15 billion.
An intraday gain of 2.5% positions LTC to test the upper boundary of the wedge pattern soon. Data from crypto analytics firm IntoTheBlock shows that Litecoin is processing a daily transaction volume of $2.85 billion in transactions over $100,000—more than 50% of its total market cap and significantly higher than similar transaction volumes in larger-cap coins like Dogecoin.
This high volume of large transactions indicates substantial whale activity, suggesting strong interest from large investors. A breakout above the wedge pattern’s upper trendline could indicate a trend reversal early, potentially setting the stage for LTC to target the $90 mark.
The weekly chart shows Litecoin’s price movement is still within a triangle pattern, indicating a long-term sideways trend. A decisive breakout from this pattern could end the current accumulation phase and trigger a major rally.
Technical Indicators
– EMAs: The 20-day and 50-day Exponential Moving Averages currently act as dynamic resistance within the wedge pattern.
– RSI: The Relative Strength Index has increased from the oversold territory to 46%, signaling strong buying activity and increased market participation.
