Litecoin’s 10% Surge Could Unlock $337 Million Worth Of Profits

Litecoin has experienced a notable rally over the last 24 hours, surging by 10%. This rally helped the altcoin recover a significant portion of the losses incurred since the end of January. 

With LTC now closing in on a crucial barrier it has struggled to break for the past two months, investors are hopeful that this could mark the beginning of a profitable run.  

Litecoin Profits Are Close

According to the In/Out of the Money Around Price (IOMAP) indicator, there is significant investor interest between $128 and $139. Investors in this range purchased approximately 2.66 million LTC worth over $337 million. Many of these investors have been waiting for a breach of the critical $136 level to bring about profits.  

If the uptrend continues, the ongoing rally could finally allow these investors to realize profits. The key for these investors lies in whether Litecoin can break through the $136 barrier and establish it as a support level. Only this would pave the way for further upward movement.  

Litecoin IOMAP. Source: IntoTheBlock

The Market Value to Realized Value (MVRV) Long/Short Difference indicator shows that despite the recent price decline, long-term holders (LTHs) are still in profit. This is a positive sign, as LTHs typically act as the backbone of any cryptocurrency. Their willingness to hold through downturns supports the idea of continued recovery for Litecoin.  

The resilience of these long-term investors is vital for Litecoin’s recovery. As LTHs continue to stay in profit, their actions are likely to have a stabilizing effect on the market. Their confidence in LTC suggests a foundation for potential future gains, assuming the broader market supports continued upward momentum.  

Litecoin MVRV Long/Short Difference. Source: Santiment

LTC Price Prediction: Another Barrier Ahead

Litecoin’s price is currently up by 10% over the last 24 hours, sitting at $127. LTC is well within the range of the crucial $136 barrier. This resistance level has been difficult for Litecoin to overcome for the past two months.

A breach above $136 is essential for further gains and to solidify the upward trend.  

If Litecoin successfully flips the $136 resistance into support, the aforementioned supply could become profitable. This could drive LTC toward the $140 level, with the possibility of extending the rally to breach $147.

These targets represent key milestones in Litecoin’s price movement, potentially marking the start of a more sustained uptrend.  

Litecoin Price Analysis. Source: TradingView

Macroeconomic factors also favor Litecoin. As BeInCrypto reported earlier, Litecoin ETFs are extremely likely to be approved by the SEC ahead of other altcoin applications. This could bring a fresh flow of institutional investments into the asset.

However, failing to breach the two-month-long barrier of $136 could lead to a repeat of history. Litecoin may fall back to its support level of $117 or even lower.

If this happens, the bullish outlook would be invalidated. The altcoin, too, could see a further decline, diminishing the recent gains.

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