- Litecoin worth dropped 37% because it acquired rejected by the ascending parallel channel’s higher trendline on February 20.
- Now, LTC is present process a pullback earlier than it sees a 70% upswing.
- Nevertheless, if LTC worth manages to slice via $161, a 36% crash will be anticipated.
Litecoin worth lately bounced off the $153 degree, creating the third decrease low for an ascending parallel channel. Because of the current promoting strain, LTC’s upswing has taken successful leading to a small pullback.
Litecoin worth corrects earlier than a bull rally
Litecoin price fashioned two swing highs and three swing lows between January 10 and February 28. An ascending parallel channel will be obtained by connecting the pivot factors utilizing trendlines. Such a setup’s goal will be decided by measuring the channel’s top and including it to the breakout level at $161, which locations LTC at $102.
Nevertheless, Litecoin worth hasn’t breached the trendline but, and if historical past is any indication, a bounce from the channel’s decrease trendline appears seemingly. Moreover, the100 twelve-hour shifting common (MA) is appearing a requirement barrier absorbing any short-term promoting strain.
Due to this fact, a bounce from the channel’s decrease trendline will play a vital position in worth reversal that would push Litecoin by 70% towards $279.
LTC/USDT 12-hour chart
Supporting this bullish outlook is Santiment’s 30-day market worth to realized worth (MVRV) mannequin, which has flashed a “purchase sign.” The final time Litecoin’s MVRV was -15%, its worth noticed a 97% improve within the subsequent 50 days. Due to this fact, this on-chain metric dampens any bearish bias and provides credence to the bounce from the important thing demand barrier at $161.
Litecoin MVRV 30-day chart
Nevertheless, traders ought to word {that a} spike in promoting strain resulting in a 12-hour candlestick shut under $161 will invalidate the bullish thesis. In such a case, Litecoin worth will be anticipated to crash 35% in the direction of the $102.
