Litecoin (LTC) has been on an upward trajectory in the last few days, showing signs of a possible recovery after hitting a low of $96. The digital currency has surged by 9.38% and is currently trading at $105, reflecting a 6.69% increase over the last 24 hours.
Prior to this positive movement, LTC was experiencing a downtrend, with weekly and monthly declines of 3.4% and 13.97%, respectively.
The recent price surge raises speculations about the future direction of Litecoin. Investors are wondering whether LTC is poised for a sustained recovery or if the current uptrend is merely a result of market speculation at the beginning of the year.
Can Litecoin Sustain Its Upward Momentum?
Analysis by CryptoCrypto suggests that Litecoin is showing strong bullish momentum, driven by increased buying pressure in the market.
One key indicator is the bullish crossover observed on Litecoin’s Stochastic (Stoch) indicator within the last 24 hours. This signals a shift in market momentum towards the positive side, potentially leading to further price hikes and offering a buying opportunity for traders.
Moreover, the Relative Strength Index (RSI) for Litecoin has also displayed a bullish crossover, confirming the uptrend and the growing demand from buyers. This surge in buying activity could push prices higher in the near term.
The increased buying pressure seems to be predominantly driven by large investors or “whales.” Data shows that large transactions in Litecoin have surged by 31.3% recently, indicating strong bullish sentiment among big players in the market.
Furthermore, the dominance of long positions in the market, currently at 53% according to Coinglass, implies that most traders are expecting LTC prices to rise. This positive market sentiment is further supported by Litecoin’s MVRV ratio, which is showing signs of a potential reversal from an undervalued state.
With the recent price surge, long-term holders of Litecoin are feeling more optimistic as their profits increase. Should this positive sentiment persist, Litecoin is likely to challenge the $115 resistance level, potentially reaching $130. However, a failure to sustain bullish momentum could lead to a price retracement towards $96.