Litecoin (LTC) has been making waves in the cryptocurrency market, gaining significant attention as its price surges past $120. With growing optimism surrounding the potential approval of the SEC’s spot Litecoin (LTC) ETF, traders are eyeing a potential breakout that could push LTC toward a 20% increase. The question on many minds is whether this rally will continue and if Litecoin can break past crucial resistance levels, ultimately reaching $150 this week.

The Surge: What’s Driving Litecoin’s Momentum?

Litecoin has shown impressive strength in recent days, breaking above the $120 mark after being in a tight range below $75 for quite some time. This surge has been fueled by growing excitement in the market, particularly after the U.S. Securities and Exchange Commission (SEC) acknowledged the filing for a spot LTC ETF. This acknowledgment has fueled new interest in Litecoin, with investors hopeful that an ETF approval could bring even more liquidity and institutional investment into the cryptocurrency.

The rally has also come at a time when major tokens like Bitcoin and Ethereum are experiencing significant upward pressure, suggesting that Litecoin’s rise is not merely a result of broader market trends, but a sign of its own underlying strength. The volume during this rally has been substantial, signaling that traders are highly optimistic about Litecoin’s potential for further gains.

Key Resistance: Will Litecoin Break Above $130?

As of now, Litecoin’s price is stuck within a range with equal bullish and bearish pressure, hovering just above $120. The crucial test for Litecoin’s next move lies at the $130 resistance level. This level has proven difficult for LTC to breach, and whether or not it can break through will determine the next phase of the price action.

The daily chart of Litecoin reveals that the price is currently trading within a symmetrical triangle pattern, heading toward the upper resistance line. While the relative strength index (RSI) has shown signs of recovery, there are concerns over the weak momentum behind the rally. The Directional Movement Index (DMI) shows that both the +DI and -DI are holding steady without a bearish crossover, but the Average Directional Index (ADX) has bottomed out, indicating that the rally may not have the strength to push through $130 without a significant influx of buying volume.

Breakout or Rejection: What’s Next for Litecoin?

The question remains whether Litecoin will break above the $130 resistance and continue its ascent toward the next key target of $140, or if it will face rejection and dip back below the $120 level. If LTC manages to breach the $130 level, it could trigger a short-term upswing, potentially reaching the $140 range. However, without sustained buying volume, a pullback could follow, bringing the price back within the current range.

If Litecoin fails to break above $130 and instead faces rejection, a decline back below $120 could signal a period of consolidation, where traders would wait for further signals before making a move. The price would likely continue trading within the symmetrical triangle pattern, awaiting a breakout or breakdown.

Key Indicators to Watch

As traders continue to monitor Litecoin’s price action, key indicators suggest that the token is at a critical juncture. The RSI has recently undergone a U-shaped recovery, which is a positive sign. However, the DMI and ADX suggest that the strength of the rally is weak, and a rejection could be imminent. For Litecoin to sustain its upward momentum, it will need a significant influx of buying volume to push through the $130 resistance level and potentially reach new highs.

Conclusion: Is Litecoin Ready for a 20% Upswing?

With Litecoin’s price currently testing resistance at $130, traders are eagerly watching to see if it can break above this level and continue its rally. The growing optimism over the SEC’s spot LTC ETF acknowledgment has been a major driver behind Litecoin’s recent surge, and if the buying pressure continues, LTC could be primed for a 20% upswing in the coming days, potentially reaching $150.

However, with weak momentum indicators and the potential for rejection at $130, the next few days will be crucial in determining whether Litecoin’s rally can sustain itself or if the price will consolidate or pull back. Traders should remain vigilant and prepared for any shifts in market conditions as the cryptocurrency space remains volatile.

In the coming week, all eyes will be on Litecoin’s price as it navigates this critical resistance level, and if the bulls manage to push past $130, we may see an exciting continuation of the current uptrend.