Litecoin Put To The Test: Can LTC Break Through $94?

Litecoin (LTC), the cryptocurrency typically dubbed “silver to Bitcoin’s gold,” has left buyers scratching their heads this week. After a short surge, LTC finds itself caught in a value tug-of-war, with analysts divided on whether or not it is going to climb to $90 or fall again to its help degree close to $80.

Combined Alerts Cloud Litecoin’s Future

Final week’s value motion for LTC was a rollercoaster trip – not the type that sends buyers screaming with pleasure, however a sluggish, rickety climb adopted by a disappointing stall. Regardless of breaking the $80 barrier on Might fifteenth, LTC’s momentum fizzled out, leaving it hovering round $83.81 at press time.

Well-liked crypto analyst, CRYPTOWZRD, isn’t mincing phrases. Their current tweet paints an image of indecision, with LTC trapped in a value vary between $80 and $94. A breakout, both bullish or bearish, appears imminent, however the course stays a thriller.

LTC Each day Technical Outlook:$LTC closed indecisively in the present day and it’s buying and selling in the midst of a Each day vary space. I’ll pay extra consideration to the intraday chart improvement tomorrow to get a fast scalp pic.twitter.com/T5hAFTndIu

— CRYPTOWZRD (@cryptoWZRD_) May 19, 2024

To decipher LTC’s subsequent transfer, analysts are turning to on-chain metrics – the digital breadcrumbs left behind by cryptocurrency transactions. Right here, too, the image is way from clear.

Glassnode’s NVT ratio, a measure of undervaluation, is flashing crimson, suggesting a possible value dip. Nevertheless, a low reserve danger metric hints at an upcoming surge in bullish sentiment. Whale exercise, typically a bullish indicator, stays excessive, and the MVRV ratio, which gauges profitability for long-term holders, has additionally taken an upward flip.

Litecoin: Technical Indicators Provide Tentative Hope

In the meantime, technical indicators supply a glimmer of hope for LTC bulls. The Relative Power Index (RSI) sits comfortably above the impartial mark, suggesting the coin isn’t overbought.

One damper on the social gathering spirit comes from the Bollinger Bands, a volatility indicator. LTC’s present place throughout the bands suggests a interval of low volatility, making a sudden value surge much less seemingly.

This subdued volatility is critical as a result of Bollinger Bands usually tighten when market costs consolidate, signaling an absence of robust directional motion. For LTC, which means that with out an exterior catalyst to drive momentum, the probability of a dramatic value breakout is diminished.

Essential Ranges: The $80-$85 Tightrope Stroll

For LTC to succeed in its holy grail of $90, it wants to beat an important resistance degree at $85. This hurdle might be notably difficult because of potential liquidations which may happen at that value level.

On the draw back, if LTC fails to carry its floor on the $80 help degree, a value drop to $78 might be on the playing cards.

Featured picture from Pixabay, chart from TradingView