Litecoin (LTC) Ready for 40% Ascent but Bulls to Encounter Many Obstacles
- LTC price displays a triple bottom pattern on the 3-day chart, confirming a possible 40% increase.
- The 50, 100, and 200-day Simple Moving Averages plague Litecoin’s road at $157.04, $170.14, and $181.97, respectively.
- A decisive candle close under $103.82 will form a lower low, canceling the bullish narrative.
Litecoin (LTC) displays a massive bullish setup emerging at high time frames, authorizing an impending bullish rally. Meanwhile, Litecoin’s road has many obstacles that might hurt or halt the anticipated uptrend.
LTC Price Eyes Higher Highs
LTC’s price has lost early 54% within the past two months, trading near $138.47 at the moment. The altcoin tagged the support level at $129.62 three times from 25 January 2021 to 7 January 2022. That way, LTC formed a triple bottom pattern.
The technical setup presents a bullish reversal pattern, predicting a trend switch to bullish from bearish. Therefore, market players may expect Litecoin to move towards the 3-day supply region that ranges between $181.65 and $209.78.
Litecoin’s price seems ready to overcome this value area and retest the barrier at $195.79, resulting in a 40% upward move from the altcoin’s current position.
Nevertheless, the upward move is not a walk in the park because of the 50, 100, and 200-day SMAs at $157.04, $170.14, and $181.97, respectively. Enthusiasts need to beware that the bullish rally highlighted above might stop or slow down because of the massive selling pressure around the mentioned levels.
IntoTheBlock’s GIOM model appears to support the challenging journey for LTC. The on-chain metric indicates that almost 938,000 addresses that bought nearly 14.73 million Litecoin coins at $152.44 and $169.1 remain out of money.
These holders may offload their LTC holdings whenever the token reaches these zones to break even, increasing the sell-side momentum. Surprisingly, their price areas correspond with 50-day and 100-day Simple Moving Averages, supporting the mentioned thesis.
Though the above metric shows LTC rally might pause, the daily functional addresses suggest high user interest. Litecoin’s active addresses increased to 354,000 from 247,000 since 26 December 2021. The 43% uptick in active users indicates investors are interested in Litecoin at current price zones, bolstering the bullish narrative.
Though Litecoin might not surge to $195 swiftly, it has a chance of retesting 50-day SMA near $157.04 and attempting to hit 200-d SMA at $170.14. Therefore, investors might await a 21% surge and 30% upswing, respectively. However, a 3-day cancel close under $103.82 will form a lower low, ruining the optimistic thesis.