Litecoin Surges 40% Since April, Eyes $140

Litecoin (LTC) has seen a significant surge in price predictions, with traders eyeing a near-term retest of $100 and potentially reaching late-2024/early-2025 highs of around $140 in the coming weeks. The cryptocurrency has been in a strong uptrend, rising approximately 40% since bouncing back from its early April lows under $64. This upward movement has seen LTC convincingly break above its 21 and 50-day moving averages (DMAs), as well as a multi-week downtrend.

Bulls are now focusing on a likely near-term retest of the $97 area, which has been a major zone of support-turned-resistance since December. A break above this level could unlock a move higher towards recent multi-month highs in the $140s, representing a more than 60% increase from current levels. Chart analysis suggests that this is the most likely next move for Litecoin. However, with growing macro risks in the background, there remains a significant amount of uncertainty.

The recent rally in both crypto and US stock markets has been driven by hopes that the trade war tensions are easing and the economic shock of trade uncertainty may not be as severe as initially feared. Forward-looking "soft" US economic data releases indicate a rapidly deteriorating economy, while more backward-looking "hard" data, such as the US jobs report, show the economy holding up for now. This has underpinned the optimistic attitude of the market. However, sentiment could quickly turn for the worse if recession fears resurface, and altcoins like Litecoin are highly exposed to a possible pullback.

While the Litecoin price could reach back to its recent highs in the $140 area in the coming months, traders are advised not to chase the rally higher until the conditions for a new altcoin season really start to fall into place. Historically, these conditions have included major central banks pumping the market full of liquidity and strong economic growth and optimism about the future. With the Fed still concerned about "sticky" inflation and trade uncertainty unlikely to abate any time soon, these goldilocks conditions for altcoins are not likely to arrive anytime soon.