Litecoin gained more than 70% during July and August, approaching this year’s highs before encountering resistance that prompted some market participants to take profit. Since then, the asset has entered a corrective phase, though one factor suggests the broader upward momentum could still have room to extend.

Litecoin technical analysis

LTCUSD - 1 Day Time Frame

On the daily timeframe, the accumulation of Buy-Side Liquidity stands out. According to classic retail theory, price often gravitates toward zones that have acted as resistance multiple times, as each retest builds liquidity in the form of clustered stop-loss orders. This dynamic could be influencing Litecoin at present.

The price structure supports this perspective. The earlier advance was impulsive and rapid, while the subsequent decline has been slower and more corrective in nature — a pattern that can indicate that underlying bullish delivery remains intact.

Litecoin price target

There has been a sweep of Sell-Side Liquidity, with the price briefly dipping below the August low. This may satisfy the first of two conditions for a potential bullish setup. The second condition would be a daily close above a defined resistance zone, which currently serves as the key barrier for bearish price delivery.

Two such zones are highlighted on the attached chart. A close above the first, lower zone could strengthen the case for upward continuation, while confirmation above the higher zone would further support that outlook.

Targets could be set at Buy-Side Liquidity levels, with the final area of interest positioned just below the psychological $300 mark.