TL;DR
LTC witnessed a substantial price uptick, fueled by MEI Pharmas $110 million purchase of Litecoin tokens. While analysts foresee a rally toward $150 and beyond, technical indicators such as the rising RSI and increased exchange inflows suggest that a possible short-term correction may be in play.
Litecoin (LTC) is among the few leading cryptocurrencies well in the green on a daily scale. Currently, it trades at approximately $124, representing a 41% increase over the past month.
LTC Price, Source: CoinGecko Its positive performance coincides with the actions of MEI Pharma, which recently acquired 929,548 LTC at an average price of $107.58, establishing a treasury position valued at over $110 million.
Thus, the pharmaceutical company became the first US-listed public firm to adopt Litecoin as a primary reserve asset. The strategic move was developed in partnership with GSR and with guidance provided by Charlie Lee (creator of the crypto project).
Litecoin has long embodied sound, scalable, and decentralized money. By initiating this strategy, MEI is taking a clear, institutional step forward that recognizes Litecoins role as both a reserve asset and an integral part of global financial systems, Lee stated.
Several analysts have noted the positive price performance of LTC, seeing this as the beginning of a major rally. X user Crypto Dios claimed the cryptocurrency is showing the same setup we saw before its 5x run in 2020.
Lucky, who has over 2.2 million followers on X, forecasted a potential spike to almost $150 in the short term, while Rain set a similar target.
Litecoin has been on a strong rise since April.
Now trading above $120 at a critical level. $150 is the nearest target, with big moves likely to come. Volume and momentum pick up$LTC is showing more strength than many altcoins.
Time to return to all time highs is near. pic.twitter.com/uPsHWfTLb1
Despite the aforementioned optimism from the analysts, LTCs Relative Strength Index (RSI) suggests a pullback might be incoming.
The technical analysis tool measures the recent speed and magnitude of price changes to help traders spot potential reversal points. Readings above 70 signal that the asset is overbought and could be due for correction, while anything below 30 is considered a buying opportunity. Currently, the RSI stands at around 71.
LTC RSI, Source: TradingView Next on the list is LTCs exchange netflow. Over the last three days, inflows have surpassed outflows, indicating a shift from self-custody methods toward centralized platforms. This, in turn, increases the immediate selling pressure.
LTC Exchange Netflow, Source: CoinGlass
