Litecoin (LTC), the cryptocurrency typically dubbed “silver to Bitcoin’s gold,” has left traders scratching their heads this week. After a quick surge, LTC finds itself caught in a worth tug-of-war, with analysts divided on whether or not it should climb to $90 or fall again to its help degree close to $80.
Blended Indicators Cloud Litecoin’s Future
Final week’s worth motion for LTC was a rollercoaster journey – not the type that sends traders screaming with pleasure, however a gradual, rickety climb adopted by a disappointing stall. Regardless of breaking the $80 barrier on Could fifteenth, LTC’s momentum fizzled out, leaving it hovering round $83.81 at press time.
Widespread crypto analyst, CRYPTOWZRD, isn’t mincing phrases. Their current tweet paints an image of indecision, with LTC trapped in a worth vary between $80 and $94. A breakout, both bullish or bearish, appears imminent, however the path stays a thriller.
LTC Day by day Technical Outlook:$LTC closed indecisively in the present day and it’s buying and selling in the course of a Day by day vary space. I’ll pay extra consideration to the intraday chart improvement tomorrow to get a fast scalp pic.twitter.com/T5hAFTndIu
To decipher LTC’s next move, analysts are turning to on-chain metrics – the digital breadcrumbs left behind by cryptocurrency transactions. Here, too, the picture is far from clear.
Glassnode’s NVT ratio, a measure of undervaluation, is flashing red, suggesting a potential price dip. However, a low reserve risk metric hints at an upcoming surge in bullish sentiment. Whale activity, often a bullish indicator, remains high, and the MVRV ratio, which gauges profitability for long-term holders, has also taken an upward turn.
Litecoin: Technical Indicators Offer Tentative Hope
Meanwhile, technical indicators offer a glimmer of hope for LTC bulls. The Relative Strength Index (RSI) sits comfortably above the neutral mark, suggesting the coin isn’t overbought.
One damper on the party spirit comes from the Bollinger Bands, a volatility indicator. LTC’s current position within the bands suggests a period of low volatility, making a sudden price surge less likely.
This subdued volatility is significant because Bollinger Bands typically tighten when market prices consolidate, signaling a lack of strong directional movement. For LTC, this means that without an external catalyst to drive momentum, the likelihood of a dramatic price breakout is diminished.Crucial Levels: The $80-$85 Tightrope Walk
For LTC to reach its holy grail of $90, it needs to conquer a crucial resistance level at $85. This hurdle could be particularly challenging due to potential liquidations that might occur at that price point.
On the downside, if LTC fails to hold its ground at the $80 support level, a price drop to $78 could be on the cards.
Featured image from Pixabay, chart from TradingView
