Bitcoin News Today: Litecoin's $135 Hurdle: Correction Looms or Breakout to $400?
Aime SummaryLitecoin (LTC) has recently exhibited mixed signals in its price trajectory, with traders and analysts debating whether its recent breakout could herald a new altcoin bull run akin to the 2020 10x rally. As of early October 2025, LTCLTC-- surged past $120, driven by renewed interest in older altcoins such as ZcashZEC-- (ZEC) and Bitcoin CashBCH-- (BCH) [2]. This rally coincided with a 41.75% spike in trading volume for LTC, pushing its price to $132.10 after breaking through the $126 resistance level [3]. However, this upward momentum faces scrutiny as technical indicators suggest LTC remains trapped in a seven-year triangle pattern, with key resistance at $135 and support near $99 [1].
The broader altcoin market has shown signs of a potential "altcoin season," with BitcoinBTC-- dominance (BTC.D) dropping below 59% in October 2025, signaling capital rotation into alternative cryptocurrencies [6]. This trend aligns with historical patterns observed in 2017 and 2021, where declining Bitcoin dominance preceded significant altcoin surges. Analysts note that the TOTAL3 index, which excludes Bitcoin and EthereumETH--, is forming a "Cup & Handle" pattern, projecting a potential altcoin market cap of $4.37 trillion-a 290% increase from current levels .
Litecoin's price action reflects both optimism and caution. While short-term technical analysis indicates a possible correction toward $99 before resuming an upward trajectory, long-term projections suggest LTC could reach $300 or even a new all-time high of $400 by 2025 [1]. These forecasts hinge on LTC breaking out of its triangle pattern and maintaining momentum above key moving averages. However, the coin's recent rally has been partly fueled by derivative trading, with over 73% of LTC positions long and open interest expanding from $450M to $600M [2]. This reliance on derivative liquidity raises questions about the sustainability of the current rally.
Regulatory developments also play a critical role. The pending approval of a LitecoinLTC-- ETF by Canary Capital, expected by October 2, could act as a catalyst. However, delays in ETF approvals-such as the SEC's abrupt pause on Bitwise's multi-asset ETF-introduce uncertainty [4]. Meanwhile, Grayscale's decision to withdraw its trust conversion application highlights the regulatory complexities surrounding crypto products [2]. These factors underscore the dual influence of market sentiment and institutional adoption on LTC's trajectory.
Key technical indicators further complicate the outlook. The Relative Strength Index (RSI) and Moving Average Convergence Divergence (MACD) for LTC remain neutral, with RSI barely below 50 and MACD positive but lacking momentum [1]. A bearish divergence in RSI and MACD during LTC's April to July rally confirmed a top formation, suggesting a correction is likely before a sustained breakout [1]. Conversely, the long-term wave count implies LTC has entered a five-wave upward movement, potentially targeting $300 and beyond [1].
In the broader context, the altcoin market's surge is driven by renewed retail interest in projects with real-world utility, such as SolanaSOL-- (SOL) and SUISUI--, alongside speculative fervor around AI-integrated tokens and tokenized assets [6]. Litecoin's position as a payment-focused altcoin with halving events and scarcity dynamics positions it to benefit from this trend, though competition from newer protocols could challenge its dominance [4].
Stay ahead of the market.
Get curated U.S. market news, insights and key dates delivered to your inbox.
AInvest
PRO
AInvest
PRO
Comments
No comments yet