Litecoin and Mantra rallied in double-digits this week. Technical and on-chain analysis suggests the two altcoins are poised for further gains next week. Bitcoin’s flash crash under $100,000 and its return above $104,000 have fuelled 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.
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 between mid-December and January. OM broke out of the range 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. LTC ended its consolidation and broke out of the support zone, less than 8% under its 2025 peak of $141.22.
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
Santiment metrics highlight the rising relevance and demand for Litecoin 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.
In the case of Mantra (OM), the total amount of holders is climbing slowly, reached nearly 44,000 on Friday. Key metrics like funding rate show a bullish bias and a positive value for nearly two weeks, confirming the token’s relevance and demand in the derivatives market.
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 and 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:
Mantra’s recent announcement about a partnership with the DAMAC Group, a real-estate giant, for tokenizing assets on their chain is a key market mover for OM token this week. JP Mullin, co-founder and CEO of Mantra said,
“This partnership with DAMAC Group is an endorsement for the RWA industry. We’re thrilled to partner with such a prestigious group of leaders that share our ambitions and see the incredible opportunities of bringing traditional financing opportunities on chain.”
The other key market mover is Bitcoin’s recovery from the flash crash under $100,000 on Monday. The correlation between the tokens and Bitcoin remains relatively high, supporting their gains.
Bitcoin catalyzes rally in Litecoin and Mantra
The three-month correlation between Bitcoin and Litecoin is 0.84, and between Bitcoin and Mantra is 0.87. The relatively high correlation suggests that Bitcoin’s price trend influences the prices of LTC and OM, therefore further gains in BTC could push the assets higher.
A flash crash in Bitcoin could push traders on edge as BTC could drag out assets correlated with it, wiping out millions of dollars in market capitalization. U.S. macroeconomic releases, the movement of U.S. based tech stocks and equities and institutional investor activity typically influenced Bitcoin price.
LTC and OM holders need to watch Bitcoin’s daily price trend to predict sudden movements in the two altcoins.
Strategic considerations
Traders who accumulated LTC under the $100 level could consider taking profits on a percentage of their holdings, at least 30% before a correction in Litecoin. Staggered profit-taking is recommended while Litecoin holds steady above the range-bound consolidation zone.
Traders holding OM acquired under $3.87 should ideally consider staggered profit-taking while the altcoin trades above $5. Sidelined buyers can enter when OM is closer to $4 and wait for a re-test of the all-time high at $5.95 before taking profits.
Disclosure: This article does not represent investment advice. The content and materials featured on this page are for educational purposes only.
