LTC Price Analysis: Is Litecoin Ready for a Recovery?
The Litecoin price (LTC) experienced a significant surge in March, breaking through the $100 barrier. However, the altcoin later corrected by 25%. Now, investors are hopeful for a recovery and it seems that LTC may be on its way back to $100.
Litecoin Is in a Good Spot
Typically, after a correction, assets are considered bearish and expected to continue declining. However, Litecoin is showing signs of potential bullishness, moving in the opposite direction.
One indicator of potential growth is the percentage of supply in profit. When this metric reaches 95% or more, it usually indicates a market top. Currently, only 58% of the total supply of Litecoin is in profit, suggesting that there is still significant room for growth.
This indicates that Litecoin is far from saturation and has the potential for further growth.
Another metric to consider is the Reserve Risk. This metric measures an asset’s price relative to its long-term holders’ confidence and indicates the risk of long-term holders selling. When investor confidence is high and the price is low, it suggests attractive risk/reward opportunities. Currently, Litecoin is not just in the green zone but below it, indicating favorable conditions for accumulation.
This suggests that LTC is ripe for accumulation as it has significant upside potential in the long term.
LTC Price Prediction: A 20% Recovery Is on the Cards
Currently trading at $85, just below the 50-day Exponential Moving Average (EMA) and the $86 resistance level, Litecoin is in a critical position. This price point aligns with the 50% Fibonacci Retracement level between $113 and $58.
If investors remain bullish, LTC has a high chance of flipping this resistance into support, which would allow it to surpass the 61.8% Fibonacci line at $92. Breaching this level would pave the way for further price increases, potentially reaching $100.
However, if LTC fails to breach the $86 resistance and struggles to surpass the 50-day EMA, it may experience a decline towards $79. Losing this support level would invalidate the bullish thesis and could result in a further drawdown to $71.
Hot Take: Litecoin’s Recovery Potential
Litecoin’s recent correction may have shaken investor confidence, but there are several indicators suggesting that a recovery is on the horizon:
- The percentage of supply in profit is only 58%, indicating significant room for growth.
- The Reserve Risk metric shows that Litecoin is still an attractive asset for long-term holders.
Based on these indicators, there is a strong possibility of a 20% recovery in Litecoin’s price. However, it is crucial to monitor key levels such as the $86 resistance and the 50-day EMA for confirmation of this bullish scenario.
Remember to conduct your own research and analysis before making any investment decisions.
Sources:
Santiment,
Glassnode,
TradingView
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