Key Points:
- Litecoin surged over 20% in a week, and hit resistance near $120 before the recent dip.
- Analysts expect Litecoin to recover from here and then enter a possible breakout toward $125, then $140.
- Exchange outflows and bullish sentiment support price growth, with the bulls gaining strength.
Litecoin (LTC) has caught traders’ attention again, and for good reason. After weeks of slow movement, the cryptocurrency is showing strength again.
Litecoin price prediction is now shifting bullish as LTC surged over 20% in just one week. The cryptocurrency also briefly touched $119 before settling around $116.
Can the $125 resistance level be broken soon? Could it also target higher price levels if said breakout occurs?
Bullish Signs Are Fueling Litecoin Price Prediction
Litecoin’s strong price action comes after the cryptocurrency recently broke a significant resistance level. According to the charts, Litecoin recently broke the fair value gap above $103.
Moreover, it continued moving higher, as expected. This means that its price targets are between $120 and $125.
The bullish sentiment doesn’t end there. According to predictions from CoinCodex, Litecoin is expected to hit $134 by August 22.
If this Litecoin price prediction were to play out, it would be a 15% increase from current levels. The CoinCodex technical indicators are flashing green for the cryptocurrency, with its Fear & Greed Index at 74.
Litecoin has posted gains in 19 of the past 30 trading days. Under any climate, this stands as a solid trend, even if price movement hasn’t been in a complete straight line..
Litecoin Price Prediction: $125 and Then $140
According to the Fibonacci extension on the daily charts and Litecoin price prediction, LTC may clear the $125 barrier. If this happens, the next stop could be around $140. This level isn’t just based on technical charts. It also aligns with social chatter and trading volumes.
That said, larger factors are still at play here. Investors must watch for aspects of the crypto market, like interest rate decisions, inflation data, or regulatory changes.
However, it is worth mentioning that even with this uncertainty, Litecoin has outperformed many altcoins in recent weeks. The RSI on the daily chart shows a reading of 71. This indicated that while the cryptocurrency is slightly overbought, the bulls are firmly in control.
Liquidation Risk Still Lurks Below
Despite the bullish setup, the market isn’t without its fair share of risk. Data shows over $33 million in long positions currently below $116.
This means that if Litecoin were to dip even slightly, it could trigger a wave of liquidations. That would lead to forced selling, and possibly drag the price down further.
However, there’s also fuel for upside. Roughly $19 million in short positions are above the $116–$120 range. If LTC rises further, it could liquidate these shorts and spark a mini price rally as those positions are forced to close.
The takeaway from all of the above is that Litecoin’s rally has leverage baked into it. While the trend is positive, any sharp move could tip the scale quickly in either direction.
Outflows Point to Long-Term Holding
There’s another bullish factor supporting the Litecoin price prediction. Over the last few sessions, LTC saw more than $5 million pulled from exchanges. This is usually a sign that holders are moving coins into cold storage or long-term accounts.
Less LTC on exchanges means reduced sell pressure. If this trend continues, Litecoin will have more room to grow without heavy resistance from sellers.
This behavior works well with the rising investor confidence shown in the sentiment index. More people are betting on Litecoin’s long-term potential. The next logical question now is, can litecoin hit $147?
The charts show that $147.56 as a possible price target. This mark represents the 1.618 Fibonacci extension, a classic point where rallies often pause.
Remember that Litecoin has already cleared essential resistance levels at $103 and $110. If it can move past $125 and then $130, the path to $147 becomes much more realistic.
In the meantime, intermediate targets include $130 and $139. Still, traders should watch closely. If LTC drops under $110 again, it could mean that the trend has officially weakened. A break below $103 would likely confirm a deeper correction, and the bears might take charge.
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