Cryptocurrency

Litecoin: Amid heavy selling pressures, indications point at a possible 60% rally

Litecoin has been buying and selling at a low cost from its earlier ATH similar to many different cryptocurrencies. However, LTC’s newest efficiency places it in oversold territory particularly now that it has dipped its toes beneath $100 as soon as once more.

Litecoin traded at $389 at its peak in May 2021 and has not managed to rally again to these ranges since then. It traded at $98 at the time of this press, courtesy of a sturdy bearish begin. Its present worth is discounted by roughly 77% from its ATH, that means it’s severely bought off. LTC’s newest selloff pushed it nearer to its 2022 low at $90.

Will Litecoin bounce again close to its present degree?

The worth bounced again considerably the final time it went to $90 in February this 12 months. An analogous final result was noticed in January when the value dipped beneath $100. This means that it is likely to be encountering structural assist round $90. A bullish breakout inside the similar degree is possible, particularly contemplating its heavy low cost.

Source: TradingView

Can LTC ship a 60%+ rally?

Litecoin’s rally in March resulted in a wholesome uptrend that broke out of its descending vary which it had been locked in since December. Its April efficiency has erased these positive aspects however the rally did spotlight sturdy momentum throughout a bull market.

Tracing Fibonacci retracement traces from the highest to its February low reveals that the following Fibonacci retracement degree is at the $161 worth degree. It would take a 60% rally for the value to soar again to that degree. Such a sturdy rally would require heavy accumulation. Litecoin’s newest dip presents one more alternative for accumulation at cheaper price ranges.

On-chain metrics could present helpful insights into whether or not LTC has been experiencing accumulation. Its Whale transaction depend metric highlights elevated exercise from 5 April to 21 April.

This is across the similar worth that the value skilled a important market correction to the draw back, suggesting elevated distribution. It additionally coincides with LTC’s MVRV ratio which reveals a dip in realized revenue relative to the market worth.

1650936319 653 Litecoin Amid heavy selling pressures indications point at a possible

Source: Santiment

The whale transaction depend signifies decreased exercise within the final 3 days. Another uptick within the subsequent few days is one thing to be careful for as a result of it would point to an accumulation wave at cheaper price ranges. Such an final result would lead to important upside for Litecoin particularly if the worldwide crypto market cap experiences an uptick.

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