Litecoin has been buying and selling at a reduction from its earlier ATH similar to many different cryptocurrencies. Nonetheless, 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 Could 2021 and has not managed to rally again to these ranges since then. It traded at $98 on the time of this press, courtesy of a robust bearish begin. Its present worth is discounted by roughly 77% from its ATH, which means it’s severely offered off. LTC’s newest selloff pushed it nearer to its 2022 low at $90.
Will Litecoin bounce again close to its present stage?
The value bounced again considerably the final time it went to $90 in February this yr. An identical consequence was noticed in January when the worth dipped beneath $100. This implies that it is likely to be encountering structural help round $90. A bullish breakout inside the similar stage is possible, particularly contemplating its heavy low cost.
Supply: 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 strains from the highest to its February low reveals that the subsequent Fibonacci retracement stage is on the $161 worth stage. It might take a 60% rally for the worth to soar again to that stage. Such a robust rally would require heavy accumulation. Litecoin’s newest dip presents one more alternative for accumulation at lower cost ranges.
On-chain metrics might present helpful insights into whether or not LTC has been experiencing accumulation. Its Whale transaction rely metric highlights elevated exercise from 5 April to 21 April.
That is across the similar worth that the worth skilled a big 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.
Supply: Santiment
The whale transaction rely signifies decreased exercise within the final 3 days. One other uptick within the subsequent few days is one thing to be careful for as a result of it would level to an accumulation wave at lower cost ranges. Such an consequence would lead to vital upside for Litecoin particularly if the worldwide crypto market cap experiences an uptick.
