Litecoin Price Targets $112 Amid Rising Demand from Short-term Holders
Amid the ongoing crypto cash rotation favoring large-cap altcoins, Litecoin #LTC, the third largest Proof-of-Work (PoW) cryptocurrency, has indicated a bullish breakout. The mid-cap altcoin, with a fully diluted valuation of approximately $6.4 billion, increased over 14 percent since last week, trading around $76 on Tuesday, November 12.
Recent data shows Litecoin's market experienced a 111 percent surge in daily average trading volume, reaching about $1.74 billion. With significant liquidity on major exchanges, particularly Binance, Litecoin is positioned for potential further gains.
Midterm Target for Litecoin Price
Litecoin's price has consolidated within a macro symmetrical triangular pattern, despite two halvings in the past six years. Although it underperformed during the 2021 bull market, establishing itself as a 'zombie altcoin', it has maintained a solid support level above $59 over the past year, which may facilitate a bullish breakout.
Additionally, Litecoin’s weekly Relative Strength Index (RSI) has risen above 50 percent since May. Technical analysis indicates that LTC has retested the bullish breakout from a macro falling logarithmic trend starting in May 2021. Consequently, Litecoin is targeting a significant range above $110, aligning with the 0.786 weekly Fibonacci Retracement.
I'm long $LTC / #LTC – Am wondering if it plays vertical catch up like $ETH / #ETH. Similar structure. pic.twitter.com/5NYhNXryl7
— Roman the Paradoxed Prophet (@ProphetsSuite) November 12, 2024
Major Factors Fueling LTC Growth
The Litecoin market has garnered substantial support from retail and institutional investors, with over 7.7 million holders on the network. Recent filings for a spot Litecoin ETF by Canary Capital in the United States indicate growing institutional demand.
Market data from IntoTheBlock reveals that short-term holders (STHs) of Litecoin increased their holdings by 31 percent in the last month. Historically, such increases in STH holdings precede significant bullish movements in value.
The balance held by short-term $LTC holders is moving up, increasing by 31% in the last month. These spikes happen relatively frequently, usually occurring around bottoms or before major spikes in price. pic.twitter.com/yNeNDkpb9U
— IntoTheBlock (@intotheblock) November 12, 2024
With expectations of a pro-crypto SEC Chair following Donald Trump's recent victory, approval for a spot LTC ETF appears more likely in 2025. Meanwhile, Litecoin core developers are enhancing network safety and efficiency to accommodate institutional investments and mainstream adoption. The recent launch of v0.21.4 includes vital security updates.