Litecoin is trading near $55 after pushing into the upper end of a rising channel, with price pressing resistance in the $55–$56 area. Over the past 24 hours, LTC has gained 3.16%, stabilizing around $53.72 on the 4-hour chart, keeping Litecoin tightly coiled beneath overhead supply.
The immediate catalyst is structural rather than speculative. Coinbase has added Litecoin as collateral for its on-chain loans. This change allows U.S. users, except those in New York, to borrow USDC without selling their LTC holdings.
As reported by BanklessTimes, Coinbase now supports Litecoin alongside XRP, Dogecoin, and Cardano as collateral, expanding options beyond just bitcoin and ether. These loans use Morpho on Base, with Coinbase handling the front-end access.
The program has already generated more than $1.9 billion in loan originations across supported assets. For Litecoin holders, the change introduces balance sheet flexibility. Traders no longer need to sell LTC to access liquidity, which can dampen spot supply during periods of demand.
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At the same time, the relatively conservative LTV cap for Litecoin keeps leverage tighter than bitcoin and ether, where borrowing thresholds are higher.
Litecoin Price Tests Channel Resistance as Momentum Flattens
Litecoin price is leaning into resistance at the moment. Analyst Cryptorphic flagged that Litecoin pushed into the upper portion of its rising channel and into the $55–$56 zone, an area now acting heavy.
His view centers on the risk of rejection, with a move back toward the middle or lower band of the channel if sellers defend this level.
On the 4-hour chart, LTC trades around $53.72 after touching a session high near $54.55. The Ichimoku structure shows price pressing into cloud resistance, with overhead supply clustered near the same region highlighted by Cryptomorphic. The 20-period moving average sits at $54.59, just above spot, reinforcing the congestion band.
Volume has not expanded meaningfully as the Litecoin price approaches resistance. That leaves momentum neutral rather than accelerating. Buyers have stepped in on dips toward the $52–$53 area in recent sessions, but follow-through above $55 remains limited.
At the moment, Litecoin is trading within a stable range. If it breaks above $56, the price could move higher. However, if it doesn’t, we might see a pullback toward mid-channel support.
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