Litecoin (LTC) has surged over 9% in the past 24 hours, reaching $127.85 on Feb. 27. This rally stands in contrast to the broader crypto market downturn, where the total valuation dropped by 3%, weighed down by weak Nvidia earnings and U.S. President Donald Trump’s latest tariff measures.
Now, technical setups suggest that LTC could extend its rally further. Let’s examine.
If the breakout is confirmed, LTC could rally toward $160 by March, marking a potential 20% gain from current levels.
However, failure to sustain above $130 could lead to a retest of lower support levels near the 50-4H exponential moving average (50-4H EMA; the red wave) at $123.80 and the 200-4H EMA at $120.41.
Note that Litecoin also has a crucial high timeframe resistance at $140, which it has failed to breach so far.
A decisive breakout above the $140-160 area could open the door for a major rally toward $360, a level derived from historical resistance zones and Fibonacci extensions.
Crypto analyst Daan Crypto Trades noted:
“The strength is mainly due to the ETF narrative recently which is putting some bid on this,” the analyst added, saying he doubts “there will actually be meaningful inflows when the ETF is live, but it’s a decent narrative until that point.”
Litecoin’s rally gained additional momentum after announcing the launch of the “.ltc” domain extension in collaboration with Unstoppable Domains on Feb. 25. The initiative mirrors Ethereum’s .eth domains, which have gained widespread adoption in Web3 identity solutions.
These blockchain-based addresses simplify transactions by replacing complex wallet strings with user-friendly names, reducing errors and improving usability. Since the announcement, LTC has rallied approximately 22%, reflecting renewed investor optimism.
Litecoin’s resilience is also evident in its performance against Bitcoin.
The LTC/BTC pair has surged by about 40% year-to-date, outperforming major altcoins like Ethereum (ETH) and Solana (SOL), which have declined over 24.45% and 20.50%, respectively.
This growth is partly attributed to Litecoin’s increasing adoption as a digital payment asset and speculation about an ETF approval.
Litecoin’s ETF narrative has gained momentum recently, mirroring Bitcoin and Ethereum’s price action ahead of their ETF approvals.
Eric Balchunas, Bloomberg’s senior ETF analyst, recently assigned a 90% probability that a Litecoin spot ETF will be approved in 2025.
Our official alt coin ETF approval odds are out. Litecoin leads w 90% chance, then Doge, followed by Solana and XRP. We are only doing for 33 Act $IBIT-esque filings. But def poss to see futures or Cayman-subsidiary type 40 Act stuff get through as well. https://t.co/JSaNnifjbu
— Eric Balchunas (@EricBalchunas) February 10, 2025
On the Polymarket betting platform, the odds of a Litecoin ETF approval by year-end stand at 75% as of Feb. 27. The U.S. SEC acknowledged CoinShares’ Litecoin ETF filing on Feb. 19, bringing the prospect closer to reality.
ETF anticipation has historically led to front-running rallies, as seen with Bitcoin and Ethereum in 2024, positioning Litecoin for further price appreciation.
Another bullish driver for LTC is its strengthening network fundamentals. Litecoin’s hashrate recently hit an all-time high of 2.25 PH/s, increasing network security and miner confidence.
A “rounding bottom” formation on miner reserve charts indicates a shift from long-term selling to accumulation. Reduced miner selling and rising network strength further support Litecoin’s long-term bullish outlook.
Yashu Gola is a crypto journalist and analyst with expertise in digital assets, blockchain, and macroeconomics. He provides in-depth market analysis, technical chart patterns, and insights on global economic impacts. His work bridges traditional finance and crypto, offering actionable advice and educational content. Passionate about blockchain's role in finance, he studies behavioral finance to predict memecoin trends.