- One model reveals immense support and weakening resistance for Litecoin in the short term.
- A separate ratio has reset into the negative region, suggesting it is time to buy into LTC.
- Litecoin hit a barrier at the 100 SMA on the four-hour chart, giving way to the ongoing correction.
Litecoin sustained the uptrend following support around $170. The descending parallel channel’s lower boundary support reinforced the level, leading to gains toward $200. A break above the upper boundary resistance confirmed an upswing to $200. However, the 100 Simple Moving Average (SMA) on the four-hour chart resistance cut short the upswing.
Litecoin seeks higher support to sustain uptrend
Immediate support has been provided by the 200 SMA. Litecoin exchanges hands at $192 at the time of writing. The Relative Strength Index (RSI) shows LTC gradually falling into the bears’ hands.
If support at the 200 SMA remains intact, Litecoin will resume the earlier staged recovery for gains above $200. A step past the 100 SMA would confirm the bullish outlook and trigger buy orders amid speculation for yields toward record highs.
LTC/USD four-hour chart
The market-value-to-realized-value (MVRV) on-chain metric by Santiment has reset from a 30-day top of 12.6%. At the time of writing, the MVRV stands at 8.97%, implying that most Litecoin holders are at a loss. In other words, investors are unlikely to sell until they breakeven and get a considerable return on investment. Therefore, Litecoin is back in the buy zone, offering an opportunity to enter the market or increase a stake.
Litecoin MVRV model
Litecoin’s vivid bullish outlook has also been validated by the robust support revealed by the IOMAP model. This anchor zone runs from $185.2 to $190.5. Here, roughly 168,000 addresses previously bought approximately 4.24 million LTC. It would not be easy breaking through this support, thus validating the upswing toward the record high.
On the upside, a weakening resistance has been observed using the IOMAP model. Our attention is drawn to the region running from $196.7 to $202.26. Here, around 95,000 addresses purchased 1.8 million LTC. If the above technical analysis holds and Litecoin swings above this zone, buy orders are likely to be triggered, adding pressure to the tailwind.
Litecoin IOMAP model
Looking at the other side of the picture
It is worth mentioning that Litecoin may continue to drop due to the resistance at the 100 SMA. Moreover, the bearish leg would extend further if the 200 SMA support fails to hold. On the downside, support is envisioned at the ascending channel’s upper boundary. If push comes to shove, the 50 SMA would be tested.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended Content
Editors’ Picks
XRP could be set for massive rally as lawyer sheds light on SEC's appeal against Ripple
XRP's strong resilience against the wider crypto market decline was strengthened by increased buying activity across retail and institutional investors. SEC's delay in filing opening brief in appeal over Ripple vs SEC ruling is a normal occurrence in litigation processes.
Coinbase scores partial win as court demands SEC to clarify crypto regulation
The US Court of Appeals for the Third Circuit affirmed that the SEC must explain why it denied Coinbase's petition. Coinbase petitioned the agency to clarify how securities laws apply to cryptocurrencies. The court added that it will not mandate the SEC to implement new rules for crypto assets.
Crypto Today: BTC price plunges 4%, Litecoin X account hacked; traders position for US inflation report
The cryptocurrency sector plunged by 5% on Monday, with over $148 billion wiped off the aggregate market capitalization. Bitcoin price dropped below $90,600 for the first time in 24 days, as traders anticipate the upcoming US CPI report.
Top 3 Price Prediction Bitcoin, Ethereum, Ripple: BTC and ETH show weakness while XRP remains strong
Bitcoin and Ethereum prices continue to trade in red on Monday after declining more than 3% and 10% in the previous week. However, Ripple remains strong and breaks above its upper symmetrical triangle boundary, suggesting a rally ahead.
Bitcoin: Room for a recovery or continuation of the pullback?
Bitcoin’s price slightly recovers and trades around $94,700 on Friday after declining nearly 6% earlier this week. US Bitcoin spot Exchange Traded Funds data shows signs of mild recovery, with a total net inflow of $462.2 million until Thursday.
Best Forex Brokers with Low Spreads
VERIFIED Low spreads are crucial for reducing trading costs. Explore top Forex brokers offering competitive spreads and high leverage. Compare options for EUR/USD, GBP/USD, USD/JPY, and Gold.