Litecoin has been buying and selling at a reduction from its earlier ATH similar to many different cryptocurrencies. Nevertheless, 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 powerful bearish begin. Its present worth is discounted by roughly 77% from its ATH, that 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 degree?
The worth bounced again considerably the final time it went to $90 in February this 12 months. The same end result was noticed in January when the value dipped beneath $100. This implies that it is perhaps encountering structural help round $90. A bullish breakout inside the identical degree is possible, particularly contemplating its heavy low cost.
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 good points 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 subsequent Fibonacci retracement degree is on the $161 worth degree. It will take a 60% rally for the value to soar again to that degree. Such a powerful rally would require heavy accumulation. Litecoin’s newest dip presents one more alternative for accumulation at lower cost 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.
That is across the identical worth that the value skilled a major 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.
The whale transaction depend 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’d level to an accumulation wave at lower cost ranges. Such an end result would end in vital upside for Litecoin particularly if the worldwide crypto market cap experiences an uptick.