During a low volatility Saturday, Litecoin (LTC) saw a 3% surge, pushing its price to $75.3. This bullish momentum appears to be driven by on-chain recovery and a significant price breakout. The question remains: will LTC gather enough steam for a $100 comeback, or are sellers poised to push back?

Litecoin’s On-Chain Volume Hits 16-Month High, Price Eyes $100

Data from Santiment reveals that Litecoin’s on-chain transaction volume skyrocketed to nearly $4 billion in a single day, marking a 16-month high. This surge in volume, coupled with the price recovery, indicates a strong buyer presence that could fuel further gains.

A key factor behind this uptick is the growing buzz around Litecoin, which now accounts for 1.08% of all crypto-related discussions – a notable increase in social dominance. The heightened on-chain activity signals Litecoin’s growing appeal among investors as the broader crypto market shows signs of recovery.

As of press time, Litecoin was trading at $75.2, with its market cap reaching $5.6 billion.

LTC Price on the Verge of Major Breakout

For the past four months, Litecoin has been trading sideways, struggling to breach the $77 resistance level. The daily chart shows this consolidation hovering above the bottom support trendline of a long-term triangle pattern.

Typically, such patterns indicate a temporary consolidation before the prevailing trend regains momentum. With the chart pattern intact, Litecoin appears poised to bounce between the two trendlines before making a decisive breakout.

Following Canary Capital’s filing for a Litecoin ETF, the coin’s price rallied to $75.26, marking a 21.5% increase over the past two weeks. This bullish recovery, backed by a significant spike in activity, suggests a higher likelihood of breaking through the $77 resistance.

If LTC successfully flips this resistance into support, it could pave the way for a 34% rally, potentially challenging the triangle’s resistance trendline at $103.

Litecoin’s price trading above the daily exponential moving averages (20, 50, 100, and 200) further reinforces the bullish outlook for LTC in the medium term.

However, if LTC fails to breach the $77 level, sellers could delay this bullish scenario and prolong the consolidation period.

Frequently Asked Questions (FAQs)

1. What’s driving Litecoin’s price recovery?
Litecoin’s price recovery is fueled by a significant increase in on-chain transaction volume, reaching nearly $4 billion in a single day.

2. How close is Litecoin to a major breakout?
Litecoin is currently 2.5% away from challenging the $77 resistance level, which has capped the price for the past four months.

3. What’s the potential upside if Litecoin breaks out?
A successful breakout above the $77 resistance could trigger a 34% rally, potentially pushing Litecoin’s price toward the next target of $103.