Litecoin (LTC) has the opportunity to break the resistance of 105 USD thanks to increasing bullish strength.

The price of Litecoin (LTC) is showing strong recovery signals on Tuesday, trading steadily around the $105 mark, with buying pressure gradually dominating the market. On-chain and derivative data reflect increasing investor confidence, with rising trading volume, a positive funding rate, and increased accumulation activity from “whales”. From a technical perspective, the bullish outlook continues to be reinforced as momentum indicators show that the recovery trend is gaining solid traction.

On-chain data and derivatives support the bullish trend of Litecoin

According to data from Santiment, the trading volume in the Litecoin ecosystem — including the total transaction value from all on-chain applications — surged to $2.03 billion on Sunday, marking the highest level since mid-October. Although it slightly decreased afterward, this figure still maintained around $1.46 billion on Tuesday. This strong momentum reflects the growing interest of traders in Litecoin, leading to increased liquidity and bolstering expectations for a sustainable bullish trend.

Litecoin trading volume chart | Source: SantimentAdditionally, the funding rate data from CoinGlass shows that the majority of traders are leaning towards the scenario of Litecoin's price continuing to rise. This index has shifted to the positive zone, currently at 0.0055%, indicating that buyers (Long) are paying fees to sellers (Short) — a signal often associated with a widespread bullish sentiment in the market.

Funding rate chart Litecoin | Source: CoinglassAt the same time, data from CryptoQuant also reinforces the positive outlook, as the futures market records strong buying activity from “whales” and the dominance of the bulls. These signs suggest that the bounce back of LTC may continue to be maintained in the near future.

Litecoin Price Forecast: Bullish Momentum is Strengthening

The price of Litecoin (LTC) has bounced back more than 10% in the past week, marking an important milestone as it broke through the strong resistance zone of 96.30 USD and surpassed the 50-day exponential moving average (EMA) at 101.45 USD. As of Tuesday noon, LTC is trading around 105.90 USD, maintaining stability above this key technical support zone.

If the 50-day EMA at 101.45 USD continues to serve as a solid support, the current bullish momentum could extend towards the peak area on October 6 at 135.99 USD — a price that marked the climax of the most recent uptrend.

Daily LTC/USDT Chart | Source: TradingViewTechnically, the RSI index on the daily timeframe reached 56, surpassing the neutral threshold of 50, reflecting a clear strengthening bullish momentum. At the same time, the MACD indicator confirmed a bullish crossover last week and continues to maintain a positive signal, indicating that the bounce back of LTC is likely to continue in the short term.

However, if the price adjusts and closes below the 50-day EMA of (,45 USD), Litecoin may return to the important support area around 96.30 USD, where the bulls will need to prove their strength once again.

SN_Nour