Litecoin, like many different cryptocurrencies, traded at a reduction to its earlier ATH. Nevertheless, LTC’s current efficiency places it in oversold territory, particularly now that it has dipped its toes again beneath $100.
Litecoin traded at $389 at its peak in Might 2021 and has did not get well to these ranges since. On the time of this writing, it was buying and selling at $98 because of a robust bearish begin. Its present value is discounted by about 77% from its ATH, that means it is closely offered out. LTC’s current sell-off introduced it nearer to its 2022 low at $90.
Will Litecoin Rebound Close to Its Present Ranges?
The value recovered considerably when it final rose to $90 in February this yr. The same consequence was noticed in January when the value dropped beneath $100. This implies that it may face structural help round $90. A bullish breakout inside the identical degree is probably going, particularly given the deep low cost.
Supply: TradingView
Can LTC Ship Over 60% Rally?
Litecoin’s March rally resulted in a wholesome uptrend that broke out of its descending vary that it had been locked in since December. Its April efficiency erased these good points, however the rally highlighted robust momentum throughout a bull market.
Tracing the Fibonacci retracement traces from the highest to their February low reveals that the subsequent Fibonacci retracement degree is on the $161 value degree. It could take a 60% rally for the value to bounce again to this degree. Such a robust rally would require robust accumulation. Litecoin’s current drop offers one other alternative for accumulation at lower cost ranges.
On-chain metrics can present helpful insights into whether or not LTC has skilled an accumulation. The metric for the variety of whale transactions highlights the elevated exercise from April fifth to April twenty first.
That is across the identical value the place the value noticed a big downward market correction, indicating elevated circulation. It additionally aligns with LTC’s MVRV ratio, which reveals a decline in realized revenue relative to market worth.
Supply: Santiment
Whale transaction rely reveals decreased exercise during the last 3 days. An additional improve within the subsequent few days is one thing to be careful for because it may point out a wave of accumulation at lower cost ranges. Such an final result would lead to vital upside potential for Litecoin, particularly if the worldwide crypto market cap experiences an uptrend.