On June 26, 2025, Litecoin (LTC) formed a bullish flag pattern on the daily chart against the U.S. dollar. A bullish flag pattern appears when a strong upward move is followed by a tight downward-sloping channel, often signaling consolidation before another rally.
The flag began forming in early May 2025, after a sharp upward price surge. The price then moved between two downward red trendlines, creating lower highs and lows. This structure suggests temporary selling pressure within a broader bullish trend.
Currently, LTC trades at $84.72. The 50-day Exponential Moving Average (EMA), sitting at $88.22, acts as the first resistance. If LTC breaks out above both the flag and the EMA, the pattern may confirm. In that case, the price could climb approximately 30% from the current level, targeting the $114.52 zone.
That projected target matches the measured move from the previous rally, applied from the breakout point. The volume shows modest recovery, but a breakout would need strong follow-through to validate the setup.
As of now, Litecoin has not yet broken out, but the bullish flag remains active. The next key move will be whether LTC closes above the flag’s upper boundary and the 50-day EMA with volume support. If that happens, it may trigger a sustained rally toward the $114 mark.
Stochastic Momentum Indicator Turns Bullish for Litecoi
Litecoin’s Stochastic Momentum Index (SMI) confirmed a bullish crossover. The blue %K line crossed above the orange %D line while both lines climbed from the oversold zone below -40. This signal often suggests increasing bullish momentum.
The Stochastic Momentum Index (SMI) is an advanced form of the Stochastic Oscillator. It measures the distance of the current closing price from the midpoint of the recent high-low range. Traders use it to detect turning points and momentum shifts.
Currently, the %K sits at 21.01 and the %D at 6.34. These values show positive momentum building. If the blue line continues to rise and maintains distance above the orange line, Litecoin may gain strength in the short term.
This SMI crossover supports the bullish flag pattern seen on the price chart. Together, these signals increase the probability of an upside breakout.
Litecoin RSI Rebounds, Signals Momentum Recovery
Meanwhile, Litecoin’s 14-day Relative Strength Index (RSI) rebounded from near the oversold region and now reads 45.73, while the RSI moving average line is at 42.42. The RSI measures momentum by comparing recent gains and losses. Values below 30 indicate oversold conditions, while those above 70 suggest overbought levels.
In this case, RSI has crossed back above its moving average, suggesting a possible shift from bearish to neutral momentum. This crossover often acts as an early indicator of strengthening price action.
While the RSI still sits below the neutral 50 mark, the upward turn supports the bullish flag pattern and the Stochastic Momentum Index crossover seen earlier. If RSI continues climbing and breaks above 50, it may confirm broader momentum aligning with a potential breakout above $88.22.
This RSI setup adds another layer to the bullish bias forming across Litecoin’s chart indicators.
Directional Movement Index Shows Strengthening Bull Trend in Litecoin
The Directional Movement Index (DMI) indicator showed a bullish momentum shift for Litecoin. The orange +DI line rose to 26.41 and crossed above the red -DI line at 25.81, signaling potential buying strength.
The DMI identifies trend direction and strength using three lines:
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+DI (Directional Indicator Plus) — shows upward movement
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-DI (Directional Indicator Minus) — shows downward movement
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ADX (Average Directional Index) — reflects overall trend strength
Currently, the ADX line sits at 15.78, still below the 20 threshold. That suggests the bullish crossover is new and the trend remains weak but building.
If the ADX continues rising above 20 in the coming sessions, the crossover between +DI and -DI would gain strength. This development adds to the bullish signals seen earlier from the RSI, SMI, and bullish flag formation on Litecoin’s price chart.
The DMI confirms growing upward pressure, but the trend still needs stronger confirmation from rising ADX and breakout above resistance.
Coinbase Launches Wrapped Cardano and Litecoin on Base Layer‑2
Coinbase introduced two new wrapped tokens—cbADA and cbLTC—on its Ethereum Layer‑2 network, Base, on June 25, 2025. The ERC‑20 tokens represent Cardano (ADA) and Litecoin (LTC), each pegged 1:1 to assets held in Coinbase’s institutional custody.
This launch lets ADA and LTC holders use their assets directly within Base’s booming decentralized finance ecosystem. When users deposit ADA or LTC into Coinbase, Base automatically issues cbADA or cbLTC. Redeeming wrapped tokens burns them on Base and returns the equivalent native assets via Coinbase custody .
Proof of reserves confirms full collateral backing. Coinbase’s on‑chain records show around 11,364 LTC and nearly 2.96 million ADA already wrapped on Base.
These additions expand Coinbase’s wrapped‑asset suite on Base—from cbBTC, cbDOGE, and cbXRP to now a total of five wrapped tokens. This ecosystem now offers ERC‑20 versions of six of the top ten non‑stablecoin assets by market cap.
Base has grown into a high‑volume Layer‑2 network, processing more daily transactions and active addresses than many peers. Analysts expect that enabling ADA and LTC to flow into Base’s DeFi protocols could draw fresh liquidity and use cases.
Coinbase waived wrap/un‑wrap fees during the introduction period. The exchange plans quarterly attestations to verify custodied collateral and support liquidity services modeled after prior wrapped tokens like cbBTC and cbETH.
With cbADA and cbLTC now live, Coinbase and Base take another step in cross‑chain interoperability, linking independent blockchain ecosystems to Ethereum‑based finance.
