Litecoin Bulls Charge: $140 Target in Sight
1min read Litecoin (LTC) is showing signs of a potential bullish rally, driven by strong buying interest and favorable market conditions. Recent market activity has indicated a shift in sentiment, with significant bid imbalances across multiple depth ranges, suggesting that the cryptocurrency could experience sustained bullish momentum.
Analysts from COINOTAG have noted that the ongoing uptrend, supported by robust buying pressure and liquidity absorption, could pave the way for further price increases in Litecoin. The recent bid imbalances and bullish price action signal possible upward momentum in the cryptocurrency market, with a potential target of $140 in the near term.
Litecoin has recently registered a clear bid imbalance across several depth ranges, particularly at 1% and 5%. This trend implies stronger buying demand than selling pressure, a key indicator for a potential price increase. With bids outnumbering asks, LTC's price rallied from around $119 to approximately $130, reflecting robust market confidence. The dynamics of liquidity have also played an integral role; prior to this surge, LTC experienced limited leverage, which often restricts abrupt price fluctuations.
The recent liquidity sweep marked a pivotal moment for LTC. As buying orders surpassed available selling orders, the cryptocurrency's price momentum significantly increased. These trends highlight the importance of monitoring bid and ask volumes at crucial price levels. As bid leads the charge, it indicates a heightened level of market participation, which often results in upward price pressure. Analysts are closely observing these metrics, as the sustained buying interest could lead to further advancement in Litecoin's valuation.
A detailed examination of Litecoin's 4-hour chart reveals that LTC successfully broke through the upper boundary of a descending trend channel—an optimistic sign after weeks of bearish adherence. The breakout prompted a transition from a low of around $119 to a peak near $126.54. This upward movement was validated by the MACD indicator, which demonstrated a divergence from the signal line, transitioning from negative to positive territory, reinforcing the bullish narrative.
The expansion of the MACD histogram signifies strengthening bullish momentum. Such technical indicators often serve as reliable signals for traders, indicating a potential reversal or continuation of trends. LTC must maintain its footing above the critical resistance at $120 for further upward movement towards the $140 threshold 
