Recently Litecoin (LTC) broke out of a multi-year symmetrical triangle pattern, ending an extended consolidation phase.
On the evening of January 5, LTC was trading at $112,32, up 1,3% on the day. This surge attracted traders’ attention, raising expectations for a sustained bullish rally, with a local target of $400.
The breakout, driven by strong momentum, has set the stage for a breakout of resistance at $136 and $232. Breaking these resistance points will be crucial on the way Litecoin to the top by $400.
TradingView data
Technical indicators paint a promising picture of price potential Litecoin The Relative Strength Index (RSI) at 61 signals bullish momentum while remaining below overbought conditions.
In addition, the 9-day and 21-day moving averages have recently formed a bullish crossover, confirming a trend reversal. These indicators suggest that Litecoin has the momentum to sustain its rally provided market conditions remain favorable.
TradingView data
On-chain metrics give mixed outlook for rally Litecoin . The in-the-money ratio is up 1,15%, indicating profitability for a larger share of holders. Concentration ratios are up 0,13%, reflecting growing interest from large holders.
Net network growth lagged behind at just 0,37%, which is classified as a bearish sign, while large transactions declined by 3,22%, indicating potential hesitation among institutional players.
Data from IntoTheBlock
MVRV coefficient Litecoin at 25,41% suggests it is moderately valued, leaving room for further growth without the risk of overbought conditions.
However, the price/DAA (daily active addresses) divergence of -71,57% is somewhat concerning as it reflects a lag in address activity relative to price growth.
This divergence could signal potential volatility if network activity fails to catch up with the recent price surge, so investors should remain cautious when assessing short-term risks.
