After being in a long consolidation phase for over six years, Litecoin (LTC), the third largest digital asset secured by the legacy proof-of-work (PoW), is showing signs of a fresh bull cycle. With a market valuation of around $9 billion and over 8.8 million non-zero addresses, the mid-cap altcoin ended March on a very positive note.

Litecoin is currently working towards surpassing the last major resistance level at $112 in order to reach its all-time high (ATH). This rally in Litecoin aligns with the overall positive sentiment in the crypto market, particularly led by Bitcoin (BTC) and the increasing investment from institutional players.

Litecoin Price Analysis

Litecoin has successfully closed above the downtrend in the monthly timeframe, marking the end of the macro downtrend for the first time since April 2021. Additionally, on the weekly timeframe, Litecoin's price retested the breakout from a macro-falling logarithmic trend. Various indicators on higher timeframes are supporting the bullish sentiment surrounding Litecoin.

The weekly Relative Strength Index (RSI) is attempting to move above the 70 level for the first time since 2020, while the monthly closing price against the US dollar has crossed above the 50 Moving Average (MA) for the first time since the third halving in August last year.

If Litecoin's positive momentum continues, the altcoin could target $134 in the mid-term according to the monthly Fibonacci Extension levels. Despite facing tough competition from other layer one blockchains like Solana (SOL) and Cardano (ADA), Litecoin remains a potentially profitable asset, having consolidated below its ATH from 2017/2018.

Fundamental Aspects

The community supporting Litecoin believes that it is only a matter of time before the US SEC approves a spot LTC ETF, similar to Bitcoin. Litecoin's network shares many characteristics with Bitcoin, which ultimately led to the approval of spot BTC ETFs.

However, Litecoin is facing significant competition from other blockchains like Solana and Cardano, which have shown remarkable growth in the web3 space over recent years.