Litecoin and Mantra Could Extend Gains, Technical Analysis Shows

Technical analysis supports gains in LTC and OM, on the daily timeframe. Mantra (OM) consolidated in a range-bound manner for several weeks

Litecoin (CRYPTO: LTC) and Mantra (CRYPTO: OM) price rallied double-digits this week amid technical and on-chain analysis suggesting the two altcoins are poised for further gains next week.

Bitcoin’s flash crash under $100,000 on Monday and its return above $104,000 by mid-week have fueled optimism among crypto traders. U.S. macroeconomic data releases, performance of tech stocks and equities, and developments in artificial intelligence are the key market movers for Bitcoin.

Altcoins like LTC and OM follow Bitcoin closely as the correlation remains high.

Technical Analysis Supports Gains In LTC, OM On Daily Timeframe

On the daily timeframe, Mantra (OM) consolidated in a range-bound manner for several weeks between mid-December and January. OM broke out of the range that spanned between $4.5352 and $3.1730.

At the time of writing, on Friday, OM trades at $5.6263, close to its all-time high of $5.9500 as observed in the TradingView chart below.

On the daily timeframe, OM formed a support zone between $4.443 and $4.069. This is a key imbalance zone and a correction could see MANTRA bouncing off this range.

Two key technical indicators, the Relative strength index and the moving average convergence divergence indicator support a bullish thesis for OM. RSI reads 76 and is sloping upward. While this typically generates a sell signal, when combined with MACD’s green histogram bars above the neutral line, it highlights underlying positive momentum in OM price trend.

A retest of OM’s all-time high is likely next week if the token sustains its upward momentum.

Litecoin was consolidating within the upper and lower boundaries of the range at $129.11 and $92.57. Throughout the week, LTC ended its consolidation and broke out of the support zone, less than 8% under its 2025 peak of $141.22.

The breakout from the lower boundary of the range saw Litecoin trades at $131.64 at the time of writing, early on Friday.

The LTC/USDT daily price chart shows an imbalance zone between $102.57 and $114.04, two key levels for Litecoin in the event of a correction in the altcoin.

RSI and MACD show underlying positive momentum in Litecoin’s price trend. RSI reads 61 and is sloping upwards and MACD shows green histogram bars above the neutral line.

Traders need to watch for a re-test of the 2025 peak and an attempt to rally towards 2024 high of $147.06.

On-Chain Analysis Supports Bullish Thesis

In the case of Litecoin, Santiment metrics highlight the rising relevance and demand for the altcoin among traders this week. The total open interest across derivatives exchanges in LTC climbed to nearly $420 million on January 30, marking a spike in the chart below.

The total number of LTC holders has climbed steadily between December 2 and January 31, according to Santiment data. On Friday, the metric climbed to 8.13 million.

The number of active addresses remains above the 2024 average, and total funding rates aggregated by LTC read positive, meaning derivatives traders maintain a bullish bias on Litecoin.

On the other hand, the Network realized profit/loss metric used to track the net profit/loss of all tokens moved on the chain on a given day shows several positive spikes in January, signaling profit-taking. Traders need to watch for large positive spikes as that would imply large volume sell-off by traders de-risking their portfolio, and this could result in a correction in OM price.

The total open interest in OM hit its highest level on January 30 above $348 million.

Market Movers Push Litecoin, Mantra Higher

The anticipation of Litecoin Exchange traded fund approval in the U.S. is one of the key market movers that drove LTC price higher this week. As the SEC officially acknowledges the 19b-4 filing from Canary Capital for a spot Litecoin ETF, traders are hopeful of an approval.

Typically a spot ETF approval generates demand and interest among institutional investors and large wallet traders. The developments in the ETF could fuel further gains in Litecoin next week.

Eric Balchunas, Bloomberg Intelligence Analyst commented on the development in a tweet on X:

“News but expected. Even Gensler’s SEC would approve these. That said, they approved in 45 days vs waiting 240 days. I really want to interpret this as a sign the new SEC will be faster but no way to know really. Litecoin on deck, know more soon https://t.