Date: Wed, May 21, 2025 | 10:40 AM GMT

The cryptocurrency market has mounted a solid comeback in recent weeks, with Bitcoin (BTC) and Ethereum (ETH) continuing to lead the charge. BTC has surged by 21%, while ETH has gained more than 53% in the past month. This bullish momentum is uplifting sentiment across altcoins — including Litecoin (LTC).

LTC has posted monthly gains of over 17%, and now a key breakout is being retested — suggesting that another bounce back might be on the horizon.

Source: Coinmarketcap

Retesting the Cup and Handle Breakout

On the daily chart, $LTC has formed a textbook rounded bottom pattern — a classic bullish setup that typically signals a trend reversal and continuation to the upside.

As shown in the chart, the rounded bottom began forming after LTC was repeatedly rejected from the neckline resistance zone around $95 in late March. This led to a sharp correction of nearly 33%, pushing the price down to a low of around $63.25 by April 7.

Litecoin (LTC) Daily Chart/Coinsprobe (Source: Tradingview)

Since then, LTC has rallied over 50%, climbing steadily to break out above the neckline resistance at $95, confirming a bullish breakout. The breakout sent LTC soaring to a recent high of $106.91, before some profit-taking kicked in — causing a pullback of nearly 11%.

Currently, LTC is retesting the breakout zone between $92 and $95, a critical support area that previously acted as resistance.

What’s Next for LTC?

In this ongoing retest, LTC is showing promising signs of holding the support zone. If bulls successfully defend this level and push price action higher on strong volume, the uptrend could resume.

A decisive bounce here could confirm the breakout’s strength and set the stage for a continuation move. If LTC reclaims and surpasses the recent local high of $106, the next leg up could unfold swiftly.

Based on the measured move from the height of the rounded bottom formation (around $32), the next technical target lies between $127 and $130 — a potential 37% upside from current levels.

Caution Still Warranted

While the setup looks bullish, traders should remain cautious. LTC’s next major move could still be heavily influenced by broader market conditions, especially Ethereum’s momentum. If ETH continues to rally, altcoins like LTC may see renewed demand.

However, if ETH falters or Bitcoin enters a consolidation phase, LTC might revisit the 50-day moving average around $85 before resuming any upward move.

Disclaimer: This article is for informational purposes only and not financial advice. Always conduct your own research before investing in cryptocurrencies.