With a shift towards optimism in the market, Litecoin [LTC] has managed to surpass a critical level. Could this breakthrough pave the way for LTC to reach $100? Let’s delve deeper into the current state of the coin to determine the likelihood of this scenario.
Litecoin Achieves Milestone Above Key Level
Litecoin bulls experienced a positive market sentiment as the coin saw a rise of more than 3% in its price last week. This bullish trend persisted, with LTC witnessing another 3% surge in its value over the past 24 hours.
Currently, LTC is trading at $65.58, boasting a market capitalization exceeding $4.9 billion, positioning it as the 19th largest cryptocurrency by market cap.
Despite the price upsurge, only 22% of Litecoin investors were in a profitable position, according to data from IntoTheBlock. However, there is a possibility of a shift as the coin successfully tested a crucial support level.
A well-known crypto analyst, Crypto Tony, recently tweeted that LTC’s successful support test could trigger a price rebound, potentially propelling LTC towards the $100 resistance level in the near future.
Insights from Glassnode’s data also hinted at a similar trajectory. The Pi Cycle Top indicator suggested that LTC’s market peak could be around $148, indicating a plausible scenario of LTC moving towards $100 in the upcoming days.
Is LTC Poised for a Breakout?
An analysis by CryptoCrypto indicated a notable increase in confidence among long-term holders of LTC (investors holding LTC for over a year) over the recent months as illustrated by a rising graph trend.
Specifically, more than 78% of LTC holders qualify as long-term investors.
Upon examining Santiment’s data, it was discovered that LTC’s MVRV ratio experienced a significant uptick. Moreover, its weighted sentiment displayed a similar pattern, indicating a prevalent bullish sentiment surrounding the coin in the market.
However, not all indicators pointed towards a favorable outlook for LTC.
For instance, Litecoin’s velocity demonstrated a decline, suggesting reduced usage of LTC in transactions within a specific timeframe. Additionally, its NVT ratio witnessed an increase.
An uptick in this metric often signals that an asset is overvalued, potentially indicating an imminent price correction.
Hence, CryptoCrypto scrutinized Litecoin’s daily chart to gain insights into its future trajectory. According to the analysis, the Chaikin Money Flow (CMF) displayed a sharp decline, signaling a possible price correction in the near future.
Conversely, the Money Flow Index (MFI) indicated a shift in favor of buyers as it trended upwards, instilling hope for a sustained price upsurge.