Litecoin (LTC) Price: Can Smart Contract Launch Spark Breakout Above $105?

TLDR

Table of Contents

Litecoin shows early recovery signs with 0.69% gain to $87.65 after dipping to $85 zone
Layer-2 smart contracts launched May 31, 2025, enabling DeFi and NFT capabilities for first time
Technical analysis reveals bullish RSI divergence and weakening MACD selling pressure
Key resistance lies between $91.18-$94.22 with potential ETF approval by October 2025
Price faces critical test at $105 resistance level for confirmed breakout toward $137-$150 targets

Litecoin is showing early signs of recovery following recent declines. The cryptocurrency climbed to $87.65, marking a 0.69% increase in the latest 4-hour session.

This upward movement comes after the price dipped to the $85 region. The bounce has sparked interest among traders watching for potential reversal signals.

Technical indicators suggest momentum may be shifting. The Relative Strength Index rebounded from oversold territory, climbing from 32.72 to 37.39.

A bullish divergence has emerged on the RSI. The price made a lower low while the RSI formed a higher low, often signaling potential reversals.

The MACD indicator also shows improvement. While the MACD line remains below the signal line, it’s starting to converge with shrinking histogram bars.

This convergence indicates that selling momentum is weakening. The price currently hovers around the 9-period EMA at $87.58, acting as a near-term pivot level.

Smart Contract Launch Creates New Possibilities

Litecoin launched Layer-2 smart contracts on May 31, 2025. This marks the first time the network supports smart contract functionality.

The upgrade enables decentralized finance applications, NFTs, and other Web3 capabilities. Lunar Digital Assets launched LitVM, the Layer-2 network with Litecoin Foundation support.

🔵#LTC
Lunar Digital Assets has introduced LitVM, a zero-knowledge L2 network designed to bring smart contract functionality to the Litecoin blockchain, which was originally launched in 2011. LitVM is built using BitcoinOS and Polygon CDK, and is supported by the Litecoin… pic.twitter.com/ZvWoAublKY
— vyre (@MRNFTROBOT) May 31, 2025

The development expands Litecoin’s use cases beyond simple transactions. The network traditionally focused on speed and low transaction fees for payments.

Elliott Wave analysis shows a five-wave recovery pattern on the 4-hour chart. This positioning creates a bullish structure for potential upward movement.

Resistance Levels Present Key Challenges

Bulls face strong resistance between $91.18 and $94.22. This zone aligns with the 20-SMA and 200-SMA levels respectively.

Price action throughout May consistently rejected attempts above this zone. The area represents a critical hurdle for sustained recovery.

For meaningful recovery, bulls must push above $91.50. Ideally, reclaiming $94 would flip momentum decisively higher.

Support levels exist around $90-$85 with deeper support near $80. Failed breakout attempts could see retesting of the $84-$82 range.

Chart analysis points to potential targets of $137-$150 if resistance breaks. A Fibonacci 161.8% extension supports these upside projections.

The critical resistance level sits at $105. Successful breakout above this mark could trigger the next major upward leg.

ETF speculation adds another catalyst to the mix. Analysts estimate 68-90% probability of Litecoin ETF approval by October 2025.

Grayscale’s Litecoin Trust trades at a 6% discount to net asset value. This discount suggests investor anticipation for potential ETF approval.

Institutional inflows could reach $400 million or more with ETF approval. This would mirror Bitcoin’s post-ETF performance surge.

Litecoin benefits from favorable regulatory classification as a commodity by the CFTC. This status provides lower regulatory risk compared to many altcoins under SEC scrutiny.

On-chain data shows accumulation between $94-$98 levels. Over 13 million LTC accumulated in this range confirms strong buyer demand.

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