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Will Litecoin (LTC) Bounce Back After a Steep 30% Price Correction?

2 mins
Updated by Ryan Boltman
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In Brief

  • Litecoin's (LTC) price nearly validated the rising wedge pattern, which predicted a 30% decline.
  • Litecoin witnessed the first spike in transaction activity since June 2023, hinting at active participation.
  • RSI and MACD are also exhibiting mixed and slow bullish signals, suggesting recovery will not be quick.
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Litecoin’s (LTC) price looks at recovery following a bearish couple of days, which also validated a 30% decline.

However, how far the potential recovery will take LTC is the question as investors’ participation grows.

Litecoin Bullish Signals Arise

Litecoin’s price is looking at potential recovery, considering the altcoin has been reeling from the recent decline. The Relative Strength Index (RSI) and Moving Average Convergence Divergence (MACD) signal positive outcomes.

RSI measures the speed and change of price movements, while MACD indicates trend direction and momentum strength through moving averages’ convergence or divergence.

The former is on the verge of breaching past the neutral line at 50.0 to register a bullish development. MACD is also exhibiting rising bullishness at the moment, which could propel LTC towards recovery.

Litecoin RSI and MACD.
Litecoin RSI and MACD. Source: TradingView

Investors are also seemingly very optimistic about a recovery. Over the last 72 hours, the total volume of transactions on the chain has noted a surge for the first time in almost a year.

Read More: How To Buy Litecoin (LTC) and Everything You Need To Know

Transactions amounting to $9.27 billion were recorded daily, a 168% rise from the average volume. This shows that interest is rising among LTC holders, which could support the expected recovery.

Litecoin Transaction Volume.
Litecoin Transaction Volume. Source: IntoTheBlock

LTC Price Prediction: Crossing $86 Next?

Litecoin’s price is trading at $81 after bouncing back from the local support of $77 in the last few days. At the time of writing, the altcoin nearly flips the 38.2% Fibonacci Retracement of $115 to $57. Marked at $79, this support floor would provide LTC with a boost to breach $86.

The Fib level of 50% coincides with this price, and reclaiming it as support would confirm a recovery rally.

LTC/USDT 4-hour chart.
LTC/USDT 4-hour chart. Source: TradingView

Read More: Litecoin (LTC) Price Prediction 2024/2025/2030

However, losing the support of $79 and $77 would result in LTC’s price falling to test the 23.6% Fib level at $71. This would invalidate the bearish thesis, extending and potentially validating the 30% correction target of the rising wedge.

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Disclaimer

In line with the Trust Project guidelines, this price analysis article is for informational purposes only and should not be considered financial or investment advice. BeInCrypto is committed to accurate, unbiased reporting, but market conditions are subject to change without notice. Always conduct your own research and consult with a professional before making any financial decisions. Please note that our Terms and ConditionsPrivacy Policy, and Disclaimers have been updated.

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Aaryamann Shrivastava
Aaryamann Shrivastava is a technical and on-chain analyst at BeInCrypto, where he specializes in market reports on cryptocurrencies from diverse sectors, including Telegram Apps, liquid staking, Layer 1s, meme coins, artificial intelligence (AI), metaverse, internet of things (IoT), Ethereum ecosystem, and Bitcoin. Previously, he conducted market analysis and technical assessments of various altcoins at FXStreet and AMBCrypto, covering all aspects of the crypto industry, including...
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