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Litecoin aims for $100 as bullish pattern emerges

GrafaGrafa2024/09/05 05:05
By:Liezl Gambe

Litecoin (CRYPTO:LTC) has demonstrated resilience in a weak crypto market, gaining 9.5% over the past week despite a broader downturn affecting other major cryptocurrencies.

This positive momentum has analysts considering the potential for a breakout that could push LTC toward the $100 mark.

Technical indicators and rising market interest suggest that Litecoin might be on the verge of a significant price move.

ZAYK Charts, a well-known crypto analyst on X (formerly Twitter), identified a descending channel pattern on Litecoin’s 1-day chart.

This pattern, characterised by a downward-sloping trendline, hints at a potential breakout.

If Litecoin's price manages to break out of this descending channel, it could signal a reversal to the upside, with a target as high as $100 based on historical patterns.

Litecoin's fundamentals also support this bullish outlook.

Data from Coinglass shows that Litecoin’s Open Interest has increased by 1%, reaching $243.96 million.

Rising Open Interest indicates growing trader confidence and interest in a potential price surge.

Additionally, Litecoin's Spent Output Profit Ratio (SOPR), which measures whether holders are selling at a profit or loss, has recently rebounded.

Glassnode data reveals that Litecoin’s SOPR, after falling below 1.0 last month, has returned to 1.0.

This suggests that LTC holders are breaking even on their sales, indicating that selling pressure might be easing and the market could be stabilising.

While Litecoin's recent gains have drawn attention, the next move will depend on market momentum and the ability of bulls to overcome resistance levels.

With technical patterns aligning and fundamental indicators turning positive, Litecoin could be set for further growth if market conditions remain favorable.

At the time of reporting, the Litecoin (LTC) price was $65.25.

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Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.

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