The crypto rally we have witnessed over the past two weeks has finally breathed a sigh of relief. Most of the coins seem to have retreated slightly, while others have been trading sideways for most of this week. Litecoin (LTC) There is no different. The coin has fallen around 5% in the last 24 hours. Here are the recent developments:
LTC pullback occurs even when on-chain data shows increased activity
The coin has risen substantially from its lowest level this year.
We expect LTC to consolidate at $120 before the next move.
Data Source: Tradingview
Litecoin (LTC) – Understanding Price Action
One thing that gives LTC investors great hope is that the on-chain activity is quite impressive. Transaction volume remains high and can only be positive for the foreseeable future. Therefore, it is safe to conclude that the recent slowdown has been largely influenced by the broader movement in the market.
But despite this, there are some bearish signs, especially in the short term. For example, LTC has declined slightly from its 50-day SMA. The momentum indicators also point downward. However, we do not expect any sharp decline.
In fact, LTC is likely to consolidate at $120. Even if the pullback somehow continues, we expect the coin to find strong support at $116. After that, Litecoin will resume its uptrend and may reach $200 in the second quarter.
Is Litecoin (LTC) a Good Investment?
Yes, LTC would be a worthwhile idea if you want to build a decent portfolio of crypto assets. In the near term, there is still a lot of potential for LTC.
Just give it time to consolidate and once it drops to around $116, consider buying. The coin is likely to continue its uptrend in the near term.