Litecoin Price Forecast: LTC robust on-chain metrics could support upswing to record highs


  • 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 price chart

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 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

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.

Cryptos feed

Latest Crypto News


Latest Crypto News & Analysis

Editors’ Picks

Bitcoin bulls ignore China warning amid a potential rally to $45,000

Bitcoin has kicked off the August month on the right footing, looking to extend the previous week’s 15% gains amid favorable fundamental and technical catalysts. Looking at the daily chart, the BTC price is gathering pace to initiate a fresh upswing towards the horizontal 200-Daily Moving Average (DMA) at $44,750.

More Bitcoin News

Dogecoin price preps up for a rally towards $0.30

Dogecoin price is jumping this Sunday, displaying a solid start to August, as a fresh buying wave grips the crypto market. DOGE price confirms a triangle breakout on the 4H chart. The bulls target $0.30 amid the renewed upside momentum.

More Dogecoin News

Shiba Inu Price Prediction: Tide turning in favor of SHIB bulls, as $0.00000750 beckons

Amid an upbeat momentum seen across the crypto board, Shiba Inu is looking to extend Saturday’s upswing from near the $0.00000590 support area. The focus remains on Sunday’s close to confirming a falling wedge breakout on the 1D chart.

More Shiba Inu News

XRP price eyes a sustained break above 200-DMA to recapture $1.00

XRP price pauses its recent uptrend, consolidating in a familiar range for the fourth day in a row, as the digital asset bides time to resume the next leg higher. Only a daily closing above the 200-DMA could open gates for a rally towards $1.00. 

More Ripple News

BEST CRYPTO BROKERS/EXCHANGES



Bitcoin Weekly Forecast: Markets revert to mean, but BTC price remains indecisive

Bitcoin price shows considerable strength after springing from the recent crashes. Still, it is uncertain whether the current bullish impulse will morph into a new uptrend or lead to a more profound decline.

Read the weekly forecast

BTC

ETH

XRP