- LTC’s price has been consolidating in a perfect bullish pennant on the 8-hour chart following a recent uptrend exhaustion.
- Technical analysis hinted at a potential breakout as LTC price surges 5.15% in the last 24 hours and Spot LTC ETF approval optimism rises.
At the time of writing, Litecoin [LTC] was trading at $122, a 5.15% price increase in the last 24 hours, while Bitcoin [BTC] and other major altcoins like Ethereum [ETH] were struggling with uncertain markets and price stagnation.
Speculations of LTC’s spot ETF approval have fueled market anticipation, as the odds of LTC ETF approval become 90 based on a Bloomberg analyst report.
LTC’s technical setup and potential scenarios
Looking at Litecoin’s price on the 8-hour chart, the altcoin has been consolidating in a bullish pennant, suggesting a potential upward rally.
LTC has been testing the upper key horizontal resistance zone within this bullish pennant, with its bullish momentum indicating a breakout above the $130-$135 zone.
According to an analysis from World of Charts shared on X (formerly Twitter), the bulls could push the price breakout, rallying toward the $150-$170 key zone in the short term and targeting $250 in the long run.
Source: X
However, if LTC faces rejection in this formation, a pullback is possible within the range.
The price dip may retest the $110-$100 lower support following a failed breakout attempt on its bullish pennant.
On-chain metrics flash mixed signals
LTC’s 24-hour Open Interest (OI) has risen by 4.8%, while trading volume has dropped by 24.61%, according to Coinglass data.
Intotheblock data shows that whales hold 48% of LTC, and 84% of total holders are at a profit, while the market remains predominantly bullish.
Santiment data suggests optimism among investors, with LTC’s social volume rising from 100 to 128 in one week.
Source: Santiment
At press time, the altcoin’s Long-to-Short Ratio stood above 1.5 in all timeframes based on Coinalyze statistics.
Source: Coinalyze
So, what now?
The 24-hour drop in trading volume signals that only a few traders are actively buying or selling Litecoin.
This suggests that long-term investors are holding their positions, waiting for higher prices, or that traders are uncertain and cautious about aggressive trading.
However, since most HODLers are in profit, traders should expect less aggressive selling or buying as they observe LTC’s next move.
On-chain metrics, technical indicators, and spot ETF progress could dictate the altcoin’s next move in the coming weeks.
