Understanding Litecoin’s Key Resistance at $105: Could It Unlock $137 for LTC?

Litecoin (LTC) is showing bullish signs as it approaches a significant resistance level at $105. Breaking and closing a daily candle above this threshold may pave the way for further price increases, potentially reaching $137. The market is displaying indications of strong long positions and accumulation, reflecting increasing investor interest.

Key Takeaways

LTC needs to break and securely close above the $105 neckline of the Inverted Head and Shoulders pattern.
Exchange outflows of $4.08 million point towards accumulation, with traders leaning heavily towards long positions.
Market sentiment around Litecoin is becoming increasingly optimistic, with LTC trading at approximately $100, showing a modest increase of 0.75% according to TradingView.
Trading volume rose by 25% to $775 million, indicating heightened interest from market participants.

Litecoin's $105 line in the sand: Is THIS the key to unlocking $137 for LTC?

Positive Market Sentiment for Litecoin

The bullish atmosphere surrounding Litecoin (LTC) is intensifying. Recently, the asset has successfully formed a promising bullish pattern and is nearing a crucial breakout level. The combination of bullish derivatives, indicating strong trader interest in long positions, alongside significant accumulation, implies that LTC may be gearing up for a significant price increase.

Currently, LTC is priced at around $100 and has seen a slight uptick of 0.75%, as reported by TradingView. Despite this moderate rise, there is clear enthusiasm among market participants, as evidenced by a 25% increase in trading volume, bringing it to $775 million, per CoinMarketCap.

Bullish Activity Observed through Derivatives

This active participation is reflected in traders' bullish bets and significant accumulation of LTC. Data from AMBCrypto shows that LTC's exchange liquidation map indicates critical liquidation levels at $97.1 on the downside and $102.1 on the upside. Traders have displayed strong interest, building $8.74 million in long positions below $97.1 and $2.87 million in short positions above $102.1.

LTC Exchange Liquidation Map Source: CoinGlass

This analysis suggests that market sentiment for LTC in the short term is bullish, with buyers currently dominating. Additionally, CoinGlass Spot Inflow/Outflow data indicates that approximately $4.08 million worth of LTC has exited exchanges in the last 24 hours. This trend often signifies potential accumulation and indicates LTC’s long-term prospects, especially when approaching key price levels.

LTC Spot Inflow/Outflow Source: CoinGlass

Technical Analysis: Important Levels for Litecoin

According to AMBCrypto’s technical analysis, LTC is displaying an inverted head and shoulders pattern on its daily chart, hinting at a potential bullish reversal.

Litecoin (LTC) Technical Outlook Source: TradingView

If LTC can gain momentum and surpass the $105 neckline, closing a daily candle there, it could set the stage for a notable price surge, possibly reaching the $137 mark—an increase of about 30%. However, without the necessary bullish momentum, there is a likelihood that LTC may either persist in a sideways trend or undergo a downward correction.

As of the latest updates, LTC’s Average Directional Index (ADX) has reached 29.95, indicating strong directional momentum, as it surpasses the vital threshold of 25. Conversely, the Supertrend indicator suggests that LTC remains in a downtrend, reflected by its persistent red trend signaling strong selling pressure.