Litecoin Price Forecast – LTC Price Action Hints at Rally to $200

Highlights:

• Litecoin now has an L2 network that opens up Litecoin to DeFi
• Entry into L2 space could unlock value in LTC and push the price to new highs
• Bitcoin price action is also likely to support Litecoin’s upside momentum

Litecoin (LTC) is making marginal gains today, reflecting the relative lack of action across the cryptocurrency market. When writing, Litecoin was trading at $88.67, up by 2.47% intraday. This makes Litecoin one of the better movers on a day when most altcoins are either in the red or not moving at all. Litecoin’s trading volumes are increasing in line with the uptick in price.

At the time of writing, Litecoin’s trading volumes were up by 8.30%, standing at $339.41 million. This indicates that investors are increasingly buying up Litecoin in anticipation of more upside in the future. A couple of factors will likely push Litecoin higher going into the foreseeable future.

Litecoin Launches L2 Network And the Market Is Excited

One of them is the latest news that Litecoin has launched a new, zero-knowledge Layer-2 network called LitVM. This makes Litecoin usable in fast-growth areas such as DeFi and the minting of NFTs. 

The move to create a Litecoin Layer-2 network is a big deal in several ways. The first one is the hype that it will likely drive around Litecoin. The cryptocurrency market, for the most part, thrives on hype around significant events. As such, with the news of a move that could unlock Litecoin’s value,  the odds are high that FOMO could build up in the foreseeable future.

Litecoin Enters Smart Contract Era With New Layer-2 Chain – @benzingacrypto https://t.co/UIsmHBANSu

— Litecoin Foundation (@LTCFoundation) May 31, 2025

Litecoin Could Outcompete Most Existing Smart Contract Platforms

Besides the hype, Litecoin could see an explosion of DeFi and other smart contract applications on its network. Since these applications will use the Litecoin tokens for settling transactions, they add to the use value of Litecoin. It could see its value go up significantly in the future.

While the L2 space is increasingly crowded, Litecoin has a shot at outpacing most competitors. That’s because, unlike most of its competitors, Litecoin is a fully decentralized cryptocurrency. It has a working mechanism similar to Bitcoin, but the person who founded it sold all his holdings back in the 2017 crypto rally.  This level of decentralization makes Litecoin credible for building Dapps in a permissionless environment.

The Litecoin blockchain is the largest global Scrypt based network, operating with 100% uptime since 2011 securing and transacting trillion of dollars of value. $LTC pic.twitter.com/q6UplkuH4d

— Litecoin Foundation (@LTCFoundation) June 1, 2025

Given that Litecoin has held on to its value for a long time despite lacking such capabilities, the new move could see Litecoin make new highs, especially if the broader cryptocurrency market turns strongly bullish. The market is already sending such bullish signals in the short term.

Bitcoin Could Boost Litecoin’s Price Going Forward

Bitcoin, the biggest market mover, continues to show significant growth thanks to adoption by institutions. This means it could soon break out and hit new highs. By extension, it could uplift the broader cryptocurrency market. For Litecoin, which has big news of its own, this could mean a surge in value to unprecedented levels. Litecoin has already seen a rise in mentions on search engines and social media after the announcement. This could hint that Litecoin could be headed for a parabolic price rally in the foreseeable future. 

Technical Analysis – Litecoin Price Forms Symmetrical Triangle Pattern

The odds of bulls taking over Litecoin are evident in its price action. On the weekly charts, Litecoin has formed a symmetrical trading pattern. The symmetrical triangle is usually followed by a bullish breakout. 

If there is a breakout to the upside driven by all the positive news around Litecoin, then a rally to $135, a key short-term resistance level, could follow. A rally through this resistance due to the L2 news could quickly see Litecoin hit prices above $200.