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- LTC holds above $100, signaling reduced selling pressure.
- RSI and MVRV ratios indicate potential short-term bullish momentum.
- Break above $115 could lead to a rally toward $147–$200.
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Litecoin (LTC) faced a rough start this week, mirroring the broader altcoin market downturn. After a brief breakdown early in the week, LTC has stabilized, holding above the key $100 level and showing early signs of recovery. Market indicators suggest the path ahead could favor buyers, making Litecoin one to watch in the short term.
Bears Losing Grip
Between September 13 and 21, Litecoin traded within a symmetrical triangle before breaking down on Monday, dipping to $105.49. Three consecutive red histogram bars on the 4-hour chart indicated strong selling pressure. However, LTC has bounced from this swing low, signaling that bears may struggle to push the price below the $100 psychological support.
The Relative Strength Index (RSI) recently entered oversold territory, indicating that selling pressure may have been exhausted. Now, as the RSI begins to break out of its downtrend, renewed buying momentum could emerge, potentially pushing LTC toward resistance near $120.
Litecoin Appears Undervalued
Litecoin’s Market Value to Realized Value (MVRV) ratio supports the bullish outlook. At 12.11%, most holders are currently at a loss, reducing the risk of mass selling. This contrasts sharply with October 2024, when the ratio exceeded 53%, triggering profit-taking and a market correction. Today, the lower MVRV suggests LTC may be poised for a relief rally.
On-chain analysis also shows that Litecoin is trading closer to undervalued levels, strengthening the argument for an extended recovery. The Money Flow Index (MFI) is forming a bullish divergence, hinting at a potential price reversal.
Also Read: XRP Ledger Reveals Massive $229M in Payments – Is Litecoin Really More Useful?
Key Price Levels to Watch
If Litecoin can sustain momentum above the $115.24 resistance, a short-term rally toward $147.55 is possible. A strong breakout could even pave the way for LTC to approach $200. Conversely, failure to maintain above $115.24 could see LTC testing deeper support at $82.93.
Litecoin’s early-week breakdown appears to have been a temporary setback. With key technical indicators pointing to reduced selling pressure and undervalued market conditions, LTC’s recovery may have room to run. Traders and investors should watch resistance levels closely, as a breakout could mark the start of a broader bullish trend.
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Disclaimer: The information in this article is for general purposes only and does not constitute financial advice. The author’s views are personal and may not reflect the views of Chain Affairs. Before making any investment decisions, you should always conduct your own research. Chain Affairs is not responsible for any financial losses.
I’m your translator between the financial Old World and the new frontier of crypto. After a career demystifying economics and markets, I enjoy elucidating crypto – from investment risks to earth-shaking potential. Let’s explore!
