Litecoin holds the key support zone – Breakout signal to 150 USD!

Litecoin (LTC) once again challenges the patience of traders and investors. On the daily time frame, this altcoin has just bounced up from the support zone of a long-standing trend line for the 5th consecutive time. This is evidence of how important this support zone is.

Every time the price retests the support zone and remains stable, it further solidifies the belief that the buyers are ready to participate, even when the sentiment across the broader market is still quite shaky.

Source: TradingView## Retail traders enter while whales slow down

Not only that, on-chain indicators are also supporting the bullish outlook for this altcoin. In fact, analyses based on Futures Bubble Maps from CryptoQuant reflect that the market is gradually heating up – a sign that volatility may soon increase.

Source: CryptoQuantSimilarly, the distribution ratio of trading orders is also more skewed towards orders below 1 million USD.

The small buy orders ( below 1 million USD ) have been strongly accumulated recently. This implies that it is the retail traders who are the main force providing most of the demand.

Source: HyblockIn contrast, whale activity has broadly decreased. The scale of orders from "big players" has reduced in the past 24 hours, and this decline coincides with a 22% drop in trading volume at the time of writing.

Simply put, the interest from retail traders plays a key role in maintaining market momentum. However, it should also be noted that history has shown: for a price increase to be sustained over the long term and to break through important resistance levels, the market often needs additional large capital inflows from capable investors.

Is this the decision zone?

Technically, the chart of Litecoin brings both hope and warns traders to be cautious. At the time of writing, the Stochastic RSI indicator is gradually approaching the oversold zone – an area often considered to have reversal potential.

The price action of LTC is currently leaning towards a bullish scenario. As long as the upward trendline is maintained, traders can aim for the liquidity cluster around the 140 USD mark as the next challenge.

If the bulls can overcome this barrier, a price increase towards 150 USD could very well occur. However, whether the enthusiasm from retail traders is enough to bring LTC there – or if the return of whales is needed – will be the key factor determining the next chapter for Litecoin.

Justin