Here’s Why Litecoin (LTC) Could Outperform the Market in 2025
Litecoin (LTC) is on a remarkable rise, attracting investors in a volatile crypto market. Explore the technical and fundamental factors driving this surge in our in-depth analysis.
Litecoin (LTC) is on a remarkable rise, attracting investors in a volatile crypto market. Explore the technical and fundamental factors driving this surge in our in-depth analysis.
Litecoin (LTC), often referred to as the “digital silver” compared to Bitcoin’s gold, is experiencing a period of sustained growth that is reigniting interest among crypto market players.
In a context where cryptocurrencies are still influenced by regulatory uncertainties and macroeconomic fluctuations, the recent LTC performance is intriguing. What are the drivers behind this bullish momentum ?
Several key factors explain the current momentum of Litecoin. One of the most discussed is the possibility of a LTC spot ETF in the United States. Although the SEC has postponed its decision, the hope for future approval is boosting optimism.
An ETF would allow traditional investors to access LTC through regulated products, attracting institutional capital. Such announcements have historically driven up crypto prices, as seen with Bitcoin and Ethereum.
Furthermore, on-chain data reveals increased activity by “whales” – wallets holding significant amounts of LTC, also known as whales.
According to Santiment, these players are actively accumulating, a signal often seen as a vote of confidence in the long-term outlook. This accumulation is accompanied by a rise in large transactions, enhancing liquidity and bullish pressure on the price. Moreover, Litecoin’s network speed and low fees continue to appeal, especially for cross-border payments, reinforcing its practical utility.
On the technical side, Litecoin is showing promising signals. The charts indicate that LTC is approaching key resistance levels, particularly around $90, with daily trading volumes frequently exceeding $700 million (CoinMarketCap data).
This surge, supported by a 12% increase in 24 hours, positions LTC among the most performant cryptos recently.
Technical indicators reinforce this interpretation. The price is trending above the 50 and 20-day moving averages, a classic short-term bullish sign. However, the real challenge lies ahead. The 100 and 200-day moving averages are both around $98, representing a significant liquidity zone that could act as a barrier for bears.
The 12H chart shows a POC at $93, but more importantly, a low-liquidity zone between $94 and $102. This area, where few trades have taken place, tends to get filled, similar to CME gaps.
Additionally, the 12H LTC Mean Reversion Channel has its upper limit at approximately $99. Unless there is a substantial bearish scenario for BTC in the coming hours or before the weekend, LTC could reach $100 fairly quickly.
The only downside is the bearish divergence on the RSI, indicating a weakening buying pressure.
However, its breakout from a descending channel, coupled with an RSI (Relative Strength Index) in a moderately overbought zone, suggests robust momentum without immediate overheating. The next target is $100, a significant psychological and technical level. In case of a retreat, support levels at $82-85 and $70-75 could limit the downside, offering entry points for traders.
The sentiment around Litecoin has significantly improved, despite the ETF delay. Its resilience to this news reflects the strength of other catalysts. For instance, the upcoming Bitcoin halving, expected to influence the entire market, could indirectly benefit LTC, often correlated with BTC. Furthermore, the perception that Litecoin remains undervalued compared to its peers, combined with its growing adoption for fast transactions, fuels enthusiasm.
However, caution is advised. Cryptocurrency volatility, regulatory decisions, and Bitcoin movements will impact LTC. A macroeconomic correction or a definitive ETF rejection could dampen the rally. Investors should monitor volumes, technical levels, and key announcements to assess the sustainability of this momentum.
The Litecoin rally is based on a strategic blend of strong fundamentals and encouraging technical signals. The anticipation of an ETF, whale activity, and chart performance paint a promising short-term future. However, in an unpredictable crypto market, vigilance is essential. The $100 threshold will be crucial to confirm or refute the continuation of this upward trajectory.
Litecoin has rebounded strongly from its recent low of $65 recorded on April 6. It has also broken its bullish trendline (purple line), further increasing the odds of a short-term bullish continuation.
If BTC continues its bullish journey, LTC has bright prospects. This is especially true as it is undervalued compared to its competitors, who are also awaiting an ETF like Solana, Cardano, or Ripple.
For those looking to invest in digital silver, here is a guide to purchase the token on Bitget :
Charles Ledoux is a Bitcoin and blockchain technology specialist. A graduate of the Crypto Academy, he has been a Bitcoin miner for over a year. He has written numerous masterclasses to educate newcomers to the industry and has authored over 2,000 articles on cryptocurrency. Now, he aims to share his passion for crypto through his articles for InvestX.
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