- Litecoin faces key resistance at $137—a breakout could spark a rally, while rejection may lead to a pullback toward $120.
- Bullish signals emerge as LTC trades above key moving averages, with MACD confirming strong momentum and buying pressure.
- Volume surge at resistance is crucial—if sustained, Litecoin could extend its rally; otherwise, a retracement toward support may follow.
Crypto analyst Lark Davis shows Litecoin (LTC) approaching a critical resistance level. He emphasized that a breakout could trigger a major rally. Conversely, rejection at this level may lead to a pullback toward $120. His insights come as Litecoin gains momentum amid growing ETF speculation .
Litecoin shot up to $136.34, claiming a 5.18% daily rise in price. As one of the most crucial levels of resistance, $137 has already been the level where breakout attempts have failed in the past. Now the market awaits a confirmation that a breakout has taken place. A surge could follow if it goes beyond that point. If, however, it fails to clear the resistance, prices could quickly drop back down to support areas of $121 or $115.
Technical Indicators Suggest Bullish Momentum
The 20-day EMA trends above the 50-day EMA signaling strong bullish momentum. Besides, Litecoin’s price remains above both moving averages, supporting further upside potential.
Moreover, the MACD indicator confirms positive momentum. The histogram bars are still positive, but the MACD line has crossed over the signal line. This raises the likelihood of a breakout by indicating ongoing purchasing pressure.
Additionally, trading volume stands at 263.01K LTC. Increased volume at resistance levels often determines whether a breakout is sustainable. If volume surges alongside a breakout, Litecoin could extend its rally significantly.
Market Outlook and Potential Scenarios
Litecoin’s price has shown volatility, with repeated attempts to break resistance. If buyers sustain momentum, LTC could establish a new higher trading range. However, if rejection occurs, a drop to the 20-day EMA near $120 is possible.
This level has acted as support in previous price movements. Moreover, failure to hold support could extend losses toward $115. The trend remains bullish as long as LTC trades above its key moving averages . Additionally, growing ETF speculation may provide further upside catalysts.
