Litecoin (LTC) has shown impressive momentum in recent weeks, with its price surging by over 8% in the last 24 hours. At the time of writing, LTC was trading at $127.08, continuing its strong upward trend that began in February, when it gained 25% against Bitcoin. As Litecoin tests key resistance levels, the next significant move for the altcoin will depend on whether it can break through these levels and sustain its bullish momentum.

Litecoin’s Bullish Push: Testing Resistance at $137.83

Litecoin is currently trading within a consolidation range, with its price fluctuating between support at $114.33 and resistance at $137.83. Recently, the price has edged closer to the resistance level, suggesting that Litecoin may be on the brink of a breakout. If LTC can surpass this resistance, it could trigger a rally toward the $170 level, which represents the next major hurdle for the token.

However, if Litecoin fails to break above $137.83, it may retreat back into its consolidation range. The support at $114.33 would be the first key level to test, followed by a potential decline toward the $98.18 level. Therefore, Litecoin’s next move will hinge on whether it can break through resistance and hold above critical levels.

On-Chain Indicators Support Continued Growth

On-chain metrics for Litecoin provide additional insight into the asset’s growth potential. The Net Network Growth metric, which tracks new addresses joining the network, has increased by 0.34%, signaling growing demand for LTC. Moreover, large transactions on the network rose by 1.73%, suggesting that institutional investors and high-net-worth individuals are becoming more active in the market.

The concentration of Litecoin in a few addresses has remained low, which is a positive signal for price growth. These on-chain indicators suggest that the demand for LTC remains strong and that its price action is supported by solid investor engagement.

MVRV Ratio Suggests Further Upside Potential

The MVRV (Market Value to Realized Value) ratio currently stands at 0.669, indicating that Litecoin’s market value remains relatively low compared to its true value. This steady increase in the MVRV ratio signals that LTC may have more room to grow. A rising MVRV ratio is a bullish signal, especially when paired with positive on-chain data.

With these indicators in place, Litecoin’s price could continue to appreciate as market participants recognize the growing potential of the asset. As long as the MVRV ratio continues to rise, LTC’s bullish outlook remains intact.

Positive Market Sentiment Supports Litecoin’s Growth

Litecoin’s market sentiment has also shown improvement, with its sentiment score reaching 1.60, up from previous months. This increase in sentiment reflects growing optimism among investors, which could drive further buying activity. As market sentiment aligns with the recent uptick in Litecoin’s price and address activity, it adds fuel to the asset’s bullish momentum.

With sentiment continuing to improve, Litecoin may continue to see upward pressure, which could lead to further price gains if these trends persist.

What’s Next for Litecoin?

Litecoin’s strong performance is backed by positive on-chain metrics, rising market sentiment, and a bullish technical setup. The increase in the MVRV ratio, growing network activity, and improving sentiment all point to the potential for continued growth. However, for the bullish trend to sustain, Litecoin must break through the resistance at $137.83 and hold above this critical level.

If Litecoin can clear this resistance, it could target $170, where another key level of resistance awaits. On the other hand, failure to break through $137.83 could result in a pullback to lower support levels at $114.33 or even $98.18.

In conclusion, Litecoin’s recent surge is driven by strong on-chain signals and growing market optimism. The ability to break through key resistance levels will determine whether the uptrend continues, with $170 as a potential target if Litecoin can maintain its momentum.