Litecoin (LTC) investors saw positive movement in the coin’s price last week, hinting at the potential for further upside.
The recent surge could cause LTC to reach a critical level and trigger a broader uptrend.
According to data from CoinMarketCap, LTC price has risen about 3% over the past week, although it started declining yesterday. At the time of writing, LTC is trading at $85.16, giving it a market cap of approximately $6.26 billion. Despite the recent stabilization, LTC has consolidated near significant resistance levels, suggesting bullish sentiment.
Some analysts believe that LTC is poised to break through this resistance level, citing a previous example where a similar move took LTC to $110 in early April 2024. If the historical pattern repeats, investors could see LTC reach new highs at the original target of $110.
A closer look at LTC’s performance reveals an increase in whale activity, as evidenced by the increase in the number of whale transactions over the past week. Additionally, LTC’s MVRV ratio, an indicator of market sentiment, is on the rise and currently stands at 8.49%.
However, not all indicators are good. For example, LTC’s NVT ratio has risen sharply, indicating possible overvaluation. Additionally, LTC’s “reserve risk” has increased, suggesting lower reliability and potentially higher prices. This is often a bearish signal prior to a price correction.
Despite these concerns, most market indicators paint an optimistic picture. The MACD showed a bullish crossover, and the Money Flow Index (MFI) and Chaikin Cash Flow (CMF) recorded notable gains.
These indicators suggest that LTC may begin a bullish rally and regain $110 in the near future.
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