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- Litecoin (LTC) stages a bullish reversal to target the psychological level at $150 from the current position; meanwhile, analysts expect the asset to challenge the $205 resistance point.
- The rally has been attributed to the recent Fed’s decision to maintain the current interest rate of 4.25% to 4.5%.
In the face of the recent broad market pullback, Litecoin (LTC) showed resilience as it held its position above a crucial support level. At press time, the asset had made a rebound to record a 19% gain on its 24-hour price chart, extending its 30-day gain to 28%. Fascinatingly, analysts expect this bullish run to continue to $300 from the current trading price of $132.
Delving deeper into the LTC price behavior, we found that the asset has been consolidating above the $100 range since the start of 2025. Fascinatingly, LTC was restricted below this level for the most part of 2023 and 2024. Even so, according to our recent analysis, about 75% of the Litecoin addresses were in profit.
Based on market indicators, LTC is attempting another bullish jump as the price sustains above the 200-day MA. Meanwhile, the 50/200 day weekly MA is approaching a bullish crossover called the golden cross. According to analysts, a validation of this move could see the asset breaching its crucial resistance level at $205.
Per our observation, the MACD shows that Litecoin was about to enter a bearish phase. Fascinatingly, there was a sudden display of bullish divergence, changing the direction of the price curve. For the short term, analysts expect Litecoin to break above a psychological level to hit $150.
Reason for the Ongoing Surge
As mentioned in our latest report, Litecoin is reacting to the recent announcement by the US Federal Reserve after a two-day Federal Open Market Committee (FOMC) meeting. According to the release, the interest rate would be maintained in the current range of 4.25% to 4.5%.
In support of its goals, the Committee decided to maintain the target range for the federal funds rate at 4-1/4 to 4-½ per cent. In considering the extent and timing of additional adjustments to the target range for the federal funds rate, the Committee will carefully assess incoming data, the evolving outlook, and the balance of risks. The Committee will continue reducing its holdings of Treasury securities agency debt and agency mortgage‑backed securities. The Committee is strongly committed to supporting maximum employment and returning inflation to its 2 percent objective.
The Committee also disclosed that it would continue to monitor the implication of the incoming information for the economic outlook.
Meanwhile, US President Donald Trump has been pushing them to lower the rates, as indicated in our earlier discussion. In a December 2024 meeting, the Fed reportedly voted 11 to 1 to cut the interest rate by 0.25%. Interestingly, this represented the third consecutive time the authorities cut rates in 2024 after the 0.25% cut in November.
