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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 under $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 value is discounted by roughly 77% from its ATH, which 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 stage?
The worth bounced again considerably the final time it went to $90 in February this yr. An identical consequence was noticed in January when the value dipped under $100. This means that it is likely to be encountering structural help round $90. A bullish breakout inside the identical 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 robust momentum throughout a bull market.
Tracing Fibonacci retracement traces from the highest to its February low reveals that the following Fibonacci retracement stage is on the $161 value stage. It could take a 60% rally for the value to soar again to that stage. Such a powerful rally would require heavy accumulation. Litecoin’s newest dip presents yet one more alternative for accumulation at cheaper price 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 identical value 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.
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’d level to an accumulation wave at cheaper price ranges. Such an consequence would end in important upside for Litecoin particularly if the worldwide crypto market cap experiences an uptick.
