The Litecoin price (LTC) hit a multi-month high in March after breaking through the $100 barrier. The altcoin, however, could not sustain this rise and ended up correcting 25%.
At the moment, investors are hopeful for a recovery from these losses, and by the looks of it, LTC might make it back to $100.
Litecoin Is in a Good Spot
Generally, following a correction, assets are considered to be bearish, and the price action to be followed is expected to be synonymous with a decline. However, Litecoin’s price is looking in the opposite direction, as the altcoin is hinting at potential bullishness.
The foremost indicator of potential for growth is the percentage of supply in profit. When this metric crosses the threshold of 95%, or when 95% of the entire circulating supply of Litecoin is in profit, a market top is formed. At the moment, the total supply in profit is just 58%.
This means that the crypto asset is far from saturation and has significant room for growth.
Secondly, the Reserve Risk metric shows that silver, in comparison to Bitcoin’s gold, is still a lucrative asset. Reserve risk is a metric used in the analysis of an asset’s price relative to its long-term holders’ confidence. It indicates the risk of long-term holders selling, which affects market stability.
When investor confidence is high, and the price is low, this metric indicates that the risk/rewards are attractive. This is usually considered a bullish sign, suggesting further growth is likely. Such is the condition of Litecoin at the moment, as the altcoin is not just in the green zone but actually below it.
What this means is that LTC is ripe for accumulation, as the only way up in the long term is backup.
LTC Price Prediction: A 20% Recovery Is on the Cards
Litecoin’s price, trading at $85 at the time of writing, is just below the 50-day Exponential Moving Average (EMA), coinciding with the $86 resistance level. This price point is in confluence with the 50% Fibonacci Retracement of $113 to $58.
Should investors remain bullish in their actions, LTC will more than likely manage to flip this resistance into support. This would allow the cryptocurrency to breach the 61.8% Fibonacci line marked at $92. This level is also known as the bull run support floor. Breaching the same would enable Litecoin’s price to continue rising to $100.
Read More: 7 Best Litecoin (LTC) Wallets for 2024
However, if $86 is not breached and LTC struggles to make it past the 50-day EMA, it would find itself falling down towards $79. Losing this support would invalidate the bullish thesis, resulting in a further drawdown to $71.
Disclaimer
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