- Litecoin’s 11% daily surge reflects renewed bullish momentum before Fed updates.
- LTC eyes $95 resistance, with a potential breakout paving the way toward $105.
- Rising $878M trading volume strengthens Litecoin’s rally, reducing short-term risks.
Litecoin (LTC) has staged an impressive recovery this week, signaling a potential bullish breakout as investors turn optimistic. The cryptocurrency, which had struggled in recent months, gained solid upward traction ahead of a crucial Federal Reserve policy update. At the time of writing on May 7, Litecoin is trading at approximately $90.92, marking an 11.26% surge in the past 24 hours.
Investors appear to be factoring in a likely pause in interest rate hikes, with Fed Chair Jerome Powell’s comments expected to shape sentiment further. Besides, the anticipation surrounding upcoming trade discussions between the United States and China adds another layer of influence on the broader market direction.
Positive Momentum Signals a Shift in Market Sentiment
The price movement over the last week reflects growing confidence among LTC investors. With an 8.41% weekly gain, Litecoin appears to be shaking off previous downward pressure. This comes after the digital asset hit a low near $70 in April 2025.
Since then, bulls have stepped in, pushing prices upward in what looks like a trend reversal. Currently, Litecoin trades just below a near-term resistance zone of $94–$95. A successful breach above this range could pave the way for a move toward $105, where strong historical resistance lies.
Additionally, Litecoin’s recent technical signals confirm this renewed bullish bias. The MACD indicator shows a positive crossover, with the MACD line moving above the signal line. The accompanying histogram also supports continued upward momentum.
Meanwhile, the RSI currently stands at 60.58, reflecting a healthy level of buying pressure without suggesting overbought conditions. However, if momentum accelerates rapidly, the RSI could soon enter an overbought zone, calling for cautious optimism.
Support Levels Hold Firm, Bulls Eye Higher Targets
On the downside, Litecoin finds immediate support at $85, followed by stronger zones around $78 and $70. These levels held firm during April’s selloff and could serve as key areas for accumulation if the price retraces. On the flip side, if the price clears $95 convincingly, further upside toward $105 and eventually $125 becomes a distinct possibility.
Moreover, Litecoin’s rising trading volume currently at $878 million confirms the strength behind this price surge. Increased volume often accompanies sustainable price moves, reducing the risk of a short-lived spike.
