- The LTC is up 6.69% in the last 24 hours.
- With a bullish crossover, Litecoin appears positioned for a recovery on the price charts.
Over the past three days, Litecoin [LTC] has been on a sustained upward trend, pointing to a possible recovery. After falling to a low of $96, Litecoin has risen 9.38%. At the time of writing, Litecoin was trading at $105, marking an increase of 6.69% in the past 24 hours.
Before these gains, LTC was in a downtrend, with declines of 3.4% on the weekly chart and 13.97% on the monthly chart.
The recent gains raise questions about the altcoin’s future trajectory. Is LTC on the verge of a sustainable recovery, or is this just a market correction driven by New Year’s speculation?
Is LTC ready for a sustainable recovery?
According to AMBCrypto’s analysis, Litecoin experienced strong upward momentum amid increased buying pressure.
These market conditions could position Litecoin for further gains on its price charts.
Source: TradingView
For starters, Litecoin has experienced a bullish crossover on its Stochastic (Stoch) indicator over the past 24 hours. This indicates that market momentum is shifting upwards, potentially leading to a price increase. This crossover signals a buying opportunity for many traders.
Similarly, Litecoin’s Relative Strength Index (RSI) has also shown a bullish crossover, further confirming the increased buying activity. The increased purchasing pressure could drive up prices.
Source: IntoTheBlock
Looking further, this perceived buying pressure is largely driven by whales. As such, major trades are up 31.3% over the past day. As whales enter the market, it appears they are bullish and expect further gains.
Source: Coinglass
Moreover, this bullishness is further evidenced by the increased demand for long positions. According to Coinglass, longs dominate the market with 53% of the total. Because longs are dominant, this suggests that most traders expect LTC prices to rise.
Source: Santiment
Finally, Litecoin’s MVRV ratio, which had previously fallen to an extremely undervalued zone, now signals a potential upside reversal.
The MVRV ratio increased from 0.208 to 0.29. When the MVRV begins to rise, it indicates that an asset is recovering from undervaluation due to increased buying interest and decreasing selling pressure.
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With the recent price increase, long-term holders of Litecoin have become more confident as their profit margins increase, while the overall market has turned bullish. With bullish sentiment dominating the market, LTC could see more gains on its price charts.
If this optimism is maintained, LTC will regain the USD 115 resistance level. A breakout from here will bring prices back to $130. If the bulls then fail to hold the market, we could see the altcoin fall to $96.
