Key Takeaways
Litecoin does not look primed for a pullback, which means a BTC or ETH price drop could affect LTC’s price. Traders can expect another 14% rally after the $117-level is flipped to support within this week.
Litecoin [LTC] has rallied by 42.4% in a month. The altcoin was buoyed by the strong bullish sentiment across the market. Bitcoin [BTC] and Ethereum [ETH] were up by 14.6% and 56% over the same period. The sizeable gains that ETH has made in a short time have spurred confidence in the altcoin market. In fact, the altcoin market cap was at $1.5 trillion, adding $401 billion (36%) since 20 June.
It was unclear how much longer this rally, for ETH or LTC, could go without a sizeable pullback. Therefore, traders need to be cautious. They can use the lower timeframe market structure shifts to detect trend reversals early and modify their market biases accordingly.
Bullish Litecoin strength promises another 14% in gains, but can these come this week?
Source: LTC/USDT on TradingView
Based on the rally in April and May from $63 to $107, a set of Fibonacci retracement and extension levels was plotted. It showed that the 61.8% retracement level was at $79.88. This level was tested as support in June, and LTC rebounded higher.
The 1-day chart showed a strong bullish breakout past the $107-level on Saturday, 19 July. At the time of writing, the 23.6% extension level at $117 was being tested as resistance. The RSI was in overbought territory, but did not signal an immediate pullback. Especially since it has not made a bearish divergence yet.
The OBV pushed skywards towards the highs of January. This reflected intense buying pressure in recent weeks, which led to rapid OBV expansion. Overall, Litecoin might be driven higher by significant demand.
The Fixed Range Volume Profile tool was used for LTC’s price action in 2025. It showed that the Point of Control (PoC) lay at $127.6, offering the next key resistance for the altcoin. The Value Area High (dotted blue) was at $133.36, and had confluence with the 61.8% extension level at $134.
Traders and investors shouldn’t immediately go short on LTC since it might be overextended, but this might not be the time to buy. A pullback towards $100 would be a welcome buying opportunity.
Disclaimer: The information presented does not constitute financial, investment, trading, or other types of advice and is solely the writer’s opinion
