Litecoin’s (LTC) price is recovering at a glacial pace, which surprisingly still has not stirred bearish sentiment among investors.
There is a chance that LTC holders could begin selling now despite consistent support from new investors.
Litecoin Investors Seem Negative
Litecoin’s price has recovered a very small amount of the losses it endured recently. However, this could change as per the Market Value to Realized Value (MVRV) Ratio, which measures investors’ profit and loss.
Currently, Litecoin’s 30-day MVRV is at 20%, indicating profitability and potential selling pressure. Historically, LTC often corrects when the MVRV is between 10% and 28%, known as the danger zone.
On the other hand, new investors are still showing positive signs. As evinced by the new adoption rate, the number of new addresses conducting transactions on the network compared to the active addresses is still high.
At 68%, nearly most of the investors are new addresses, which is a sign of solid network growth. This will be the countering factor against the bearishness brought on by existing LTC investors.
Read More: How To Buy Litecoin (LTC) and Everything You Need To Know
LTC Price Prediction: Recovery Is Difficult
Litecoin’s price is likely going to remain consolidated going forward. The reason behind this is twofold, the first being the aforementioned factors, which exhibit a bullish-neutral approach.
Second is the fact that LTC has flipped the 23.6% Fibonacci Retracement line as support. This level is known as the bear market support floor, and it tends to prevent any drawdown. The same will support sideways momentum, strengthening consolidation between $79 and $71.
Read More: Litecoin (LTC) Price Prediction 2024/2025/2030
Should Litecoin’s price lose the support at $71, the drawdown could send it to $69. Losing this level will invalidate the bullish-neutral thesis, resulting in a drop to $61.
Disclaimer
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