coinnounce.com
On the daily chart, the price of litecoin (1) is creating a bearish divergence that suggests a potential sell-off. According to on-chain data, 22% of LTC owners are making money, illustrating the pessimistic picture. The bullish perspective will be invalidated if the $55.23 level is breached, resulting in a lower low. After the FTX-caused slump bottomed out on November 9, the price of Litecoin started an extraordinary rise. Many investors are making money as a result of the dramatic changes. However, a slight pullback may be required to extend this advance further.
The price of Litecoin has come down.
Starting on November 9th, the price of Litecoin increased by 75% in just two weeks. There doesn't seem to be any bullish sentiment driving this big increase in momentum, stopping the upward trend. Investors could think about two possibilities when LTC rebounds off the $73.10 support level: a slight pullback or a trend continuation. The former appears more likely to happen for two reasons. However, the latter is feasible under specific circumstances. The higher highs of November 6 through November 23 and the lower lows of the Relative Strength Index (RSI) (2) within the same time frame formed the bearish divergence.
This disparity suggests that the impetus is decreasing, yet the price keeps rising due to inertia. The price of Litecoin has recently increased, but it is unlikely to continue indefinitely, so market players should be ready for a trend reversal. Therefore, if the $73.10 support floor is broken, Litecoin's price is likely to return to the middle of the 75% increase at $65.63. A sweep of the $61.30 and $58.24 levels might happen sometimes. For LTC, traders should prepare for a downturn of 15% to 24%. But this reversal does not portend the end of the upward trend. On the other hand, a swift advance over $65.63 would suggest that the bulls are still in charge.
What the future might hold
Investors may anticipate Litecoin price to surge from $65.63 and retest the $96.30 barrier in such a scenario, bringing the whole gain to 47%. The 30-day Market Value to Realized Value (MVRV) indicator further supports the idea of a downturn. The average profit or loss of investors who acquired LTC over the previous month is calculated using this on-chain statistic. This index is now hovering around 22%, indicating that the average gain for all investors who bought LTC in the previous month was 22%. If these holders choose to sell their positions, it can increase selling pressure and lead to a correction.
While the short-term outlook for the price of Litecoin is bearish, the long-term outlook is positive, with LTC perhaps attempting to reach $100 once more. The bullish perspective will be invalidated if the retreat fails to rise over $65.63, resulting in a daily candlestick closure below the $55.23 level. This will result in a lower bottom. Such an event may cause the price of Litecoin to drop by 15% and retest the $47.60 mark.