Litecoin Breaks Out: Can LTC Hit $131 Before Weekly Close as ETF Hopes Fuel Rally?

Litecoin (LTC) is roaring back to life after a prolonged consolidation phase, recording a sharp 11% rally in the past 24 hours to trade just above $122.

Traders and analysts now speculate whether LTC can breach the critical $131 resistance before the week’s end, a move that would confirm a major technical breakout and elevate market sentiment.

The surge in Litecoin’s price comes on the back of bullish technical indicators, increased merchant adoption, and surging ETF speculation.

With Litecoin now boasting a $9.35 billion market cap and 24-hour trading volume up over 170% to $1.48 billion, momentum appears to be building.

ETF Approval Odds Hit 90% as Merchant Adoption Soars

A key catalyst driving LTC’s rally is growing optimism surrounding a potential Litecoin spot ETF. Despite the SEC delaying its decision on Grayscale and CoinShares applications until October, Bloomberg analysts estimate a 90% approval probability.

Litecoin’s classification as a commodity by the CFTC gives it regulatory clarity, a critical edge shared only with Bitcoin and Ethereum.

Institutional interest is also picking up, with MEI Pharma recently allocating $100 million into Litecoin, viewing it as a low-beta treasury asset. Meanwhile, CoinGate reports that Litecoin was used in 14.5% of all crypto payments on its platform in July, second only to Bitcoin.

Its low transaction fees and 2.5-minute block times have made LTC a favorite among merchants, with nearly 40% now choosing to hold LTC from payment receipts.

Technical Indicators Point to $131–$144 Targets

From a charting perspective, LTC has broken out of a three-year consolidation, crossing the $110.70 resistance and now holding strong above $122. With the Bollinger Bands expanding and the RSI at 80.31, volatility is increasing, though overbought conditions suggest a possible short-term pullback.

A clean breakout above the 23.6% Fibonacci retracement level at $110.70 now sets sights on the next key resistance at $131.18. If momentum sustains, bulls may push toward $144.56, with $128.92 marked as the Supertrend confirmation level.

However, a failure to sustain the current move could bring LTC back to retest support at $110.70 and $107.89. A conservative stop loss for traders sits at $103.80.

With a technical breakout in progress, institutional interest rising, and ETF approval on the horizon, Litecoin may finally be entering a new bullish phase. The coming days will be crucial, and $131 might just be within reach.