|

Litecoin Price Prediction: LTC looks at arduous journey to $200

  • Litecoin price is trying to breach the 50% Fibonacci retracement level at $171.27.
  • If LTC shatters the said barrier, a 12% upswing could tag $202.
  • Transactional data shows that underwater investors might hinder or halt this climb.

Litecoin price has spent almost ten days under the midway point of its current range. At the time of writing, LTC is taking a jab at a critical resistance level, trying to head higher.

A successful breach of the said supply barrier will likely trigger an upswing.

Litecoin price faces an uphill battle

Litecoin price slid below the 50% Fibonacci retracement level at $171.27 on June 7 and has been trying to undo it. However, its efforts over the past ten days have gone to naught. At present, LTC is grappling with $171.27; a decisive 4-hour candlestick close above it will signal the start of an upswing.

In such a case, Litecoin price could rally 12% to tag the 70.5% Fibonacci retracement level at $193.34. In some cases, the altcoin might retest the next barrier at $202.50.

However, if LTC manages to close above $202.50, it might even reclaim the range high at $225.11.

LTC/USDT 4-hour chart

LTC/USDT 4-hour chart

Supporting this upswing is the 365-day Market Value to Realized Value (MVRV) model in the opportunity zone. This fundamental index is used to measure the average profit/loss of investors that purchased LLTC over the past year.

A negative value represents that the short-term traders are selling their LTC holdings, allowing the long-term holders to accumulate.

The last time the 365-day MVRV model dipped to -14.25% was in mid-September, and Litecoin price rose roughly 200% in following four months. Therefore, if something similar were to happen, LTC could be due for a massive upswing.

LTC 365-day MVRV chart

LTC 365-day MVRV chart

On the other hand, IntoTheBlock’s Global In/Out of the Money (GIOM) model shows that underwater investors are stacked, large in number and present up to $300.

285,000 addresses that purchased 7.09 million LTC at an average price of $188.39 are “Out of the Money.”

Hence, a short-term surge in buying pressure will likely face selling pressure from these holders who might want to break even.

To make matters worse, GIOM shows that the immediate support level at $152.49 harbors only 16,300 addresses that purchased nearly 185,000 LTC. Therefore, a downswing might be prominent, should it arrive.

LTC GIOM chart

LTC GIOM chart

Therefore, investors need to exercise caution and wait for a decisive close above the $171.27. If Litecoin price creates a lower low below the recent swing low at $154.10 set up on June 12, it will invalidate the bullish thesis.

In such a case, LTC might revisit the range low at $117.43.

Author

Akash Girimath

Akash Girimath is a Mechanical Engineer interested in the chaos of the financial markets. Trying to make sense of this convoluted yet fascinating space, he switched his engineering job to become a crypto reporter and analyst.

More from Akash Girimath
Share:

Editor's Picks

Top Altcoins Price Forecast: Ripple, Cardano and Solana halt decline amid signs of exhaustion

Top altcoins, Ripple, Cardano, and Solana, hold steady on Thursday, halting the prevailing decline linked to hot US inflation data and the post-US midterms period. The brief pause suggests that the markets have priced in October’s hot CPI of 0.4%, beating the 0.3% market expectation.

Ripple pares losses above $1.00 amid subdued investor interest

Ripple pares losses on Thursday, trading around $1.05 amid a largely lethargic broader cryptocurrency market. Bulls have found no relief since the sharp correction on November 5 and are banking on support between $1.00 and $1.05 to push for range trading ahead of fresh recovery attempts.

Crypto Today: Bitcoin, Ethereum, XRP trade under pressure as bottom signals remain elusive

Bitcoin corrects near a key support range near $73,000 on Thursday, trading alongside altcoin majors Ethereum and Ripple. The smart contract token, ETH, holds above its $2,000 demand area, while the remittance token XRP upholds technical weakness, raising correction odds below $1.00.

Pi Network rebound loses steam ahead of critical resistance trendline

Pi Network price is holding steady around $0.0700 at press time on Thursday, consolidating around the round figure after Tuesday’s 8% rebound. The rebound coincided with a massive outflow of more than 590 million PI tokens from the OKX exchange wallet, suggesting reduced downside pressure.

Bitcoin: Bears tighten grip as BTC eyes fifth weekly loss
Bitcoin (BTC) remains under pressure, down over 3% this week, trading near $75,500 on Friday and heading for its fifth straight weekly loss. Persistent outflows from US-listed BTC spot Exchange Traded Funds (ETFs), a sharp sell-off in US technology stocks, and rising market liquidations are weighing on sentiment and limiting Crypto King’s recovery attempts.