Litecoin (LTC) Shows Renewed Strength After Shaking Off Weeks of Bearish Pressure, Surging 6.5% to Hit 3-Month Highs

Litecoin (LTC) is showing renewed strength after shaking off weeks of bearish pressure, as the altcoin surged over 6.5% in the past 24 hours to hit a three-month high.

Litecoin (LTC) price showed renewed strength on Thursday, shaking off weeks of bearish pressure to surge over 6.5% and hit a three-month high.

The world’s eighth-largest cryptocurrency was last trading at $89.04 by 08:37 ET (12:37 GMT), having briefly touched a high of $91.00. LTC’s latest move higher saw it add to a recent rally from a local low of $83.00, which began last week.

Litecoin’s gains were accompanied by a notable boost in trading volume, which saw it climb by 31% over 24 hours to reach over $509.5 million. A surge in volume accompanies a price increase usually signifies rising interest in an asset.

Litecoin price chart (15 minutes) showing strong breakout from resistance.chart by TradingView

Litecoin’s strong move up saw it punch through the upper boundary of a light descending channel, which it had been trading inside for much of the past month. It is now in the process of retesting that breakout level, ahead of a potential move toward the next resistance at $96.00. A successful retest of the breakout could be key to setting up another leg up.

On-chain data also pointed to bullish conditions for Litecoin. According to blockchain analytics firm IntoTheBlock, the total flow of Litecoin into exchanges has dropped drastically over the past three weeks, reaching its lowest level in three months. Lower exchange inflows usually suggest that holders are opting to keep their LTC in private wallets rather than sell, which could be an indication of increasing accumulation.

This pattern becomes even more pronounced among large holders, or whales. Netflows from large LTC holders to exchanges have decreased sharply in recent weeks, further reinforcing the idea that these influential investors are holding tightly to their assets. In fact, there has been a net positive inflow of 116,800 LTC among whales, showcasing their increasing stake in the asset’s potential rally.

Meanwhile, Litecoin’s stock-to-flow ratio has spiked to 306. This metric measures the current supply of an asset compared to the rate of new issuance. A higher stock-to-flow ratio suggests an asset is becoming more scarce, which can, in turn, lead to higher prices, especially if demand remains the same or increases.

In the case of Litecoin, the rapid increase in the stock-to-flow ratio comes amid a period of strong price performance by the altcoin. LTC is now up by 23% over the past seven days and shows no signs of slowing down as it pushes toward the next resistance at $96.

At that level, Litecoin would encounter a major psychological milestone, as it would mark a return to prices last seen in November 2022. Moreover, if the altcoin manages to break above $96, it could find the next level of support at around $83.00, the recent low from which LTC rebounded.

However, not all scenarios are bullish. If bulls fail to hold the breakout and Litecoin’s price falls back below the retest level, the asset could retreat to test the recent low at $83, where it previously found local support.

The coming days will be key in determining whether this rally has the strength to continue or if a temporary correction is on the horizon. But with whale accumulation on the rise, trading volume increasing, and scarcity intensifying, Litecoin appears better positioned than it has been in months. If these conditions persist, a move to $96 could be more than just speculative—it might be the next stop in a broader upward trend.

News data source: kdj.com

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