- Statistics suggested that LTC was underrated on the charts
- Technical indicators were bearish on Litecoin
Like most cryptocurrencies, Litecoins [LTC] The price remained under bear control last week due to market conditions. However, taking into account the latest data, LTC could soon perform bullishly if it manages to test a pattern that has formed on the chart.
Litecoin loses value
AMBCrypto reported a few days ago how the price of Litecoin rose by almost 10% to lead the altcoin market rally during that day’s intraday trading session. However, the trend did not last long as the bears soon buckled and pushed the value of the coin down.
According to CoinMarketCapThe value of LTC has fallen by more than 5.5% in the past seven days. However, the altcoin showed some signs of recovery as its value increased marginally over the past 24 hours. At the time of writing, LTC was trading at $98.80 with a market cap of over $7.34 billion, making it the twentieth largest cryptocurrency on the charts.
World of Charts, a popular crypto analyst, recently shared one tweet highlighting a bull pattern that formed on LTC’s chart. According to the same, the price of LTC was moving in a bullish pennant pattern. A breakout above that pattern could allow LTC to increase its price by more than 20% in the coming days.
Is a bull rally inevitable?
Since the price of LTC was moving within a bull pattern, AMBCrypto checked the coin’s statistics to determine the likelihood of LTC breaking above that pattern. Our analysis of Glassnode’s data showed that LTC’s network-to-value (NVT) ratio remained low. A decline in this measure means an asset is undervalued, underscoring the high probability of a price increase.
Source: Glassnode
Moreover, the altcoin’s open interest also fell alongside its price. This is also a bullish signal, as a drop in open interest is a sign that the likelihood of a change in the ongoing price trend is high. Nevertheless, Litecoin’s MVRV ratio fell sharply. At the time of writing, it was trading at 13.3%, suggesting LTC might not be able to initiate a bull rally.
Source: Santiment
Read Litecoins [LTC] Price prediction 2024-25
To better understand whether LTC would reach $100 in the short term, AMBCrypto then analyzed its daily chart. We found that the technical indicator MACD showed a bearish crossover. The Chaikin Money Flow (CMF) also recorded a decline, indicating a continued decline in prices.
Since most market indicators have been bearish lately, it will be interesting to see if the bullish numbers translate into a price increase and allow the LTC to rise in the coming days.
Source: TradingView