Litecoin price has crawled back over the past few days as the crypto industry and the stock market rebound. LTC was trading at $61.74 on Tuesday, which is almost 52% higher than this year’s low. Its market cap is over $4.4 billion.
Fear and Greed Index
Litecoin and other cryptocurrencies have seen a recent surge in prices as signs of greed begin to emerge in the market. For example, the US dollar index has slipped from a year-on-year high of $109.3 to around $109.3. The dollar’s fall is a sign that investors are adopting a risk-on sentiment.
In addition, the closely watched Volatility Index (VIX) has fallen to its lowest level in months. This is an indication that the volatility in the market has reduced slightly.
Meanwhile, the Fear and Greed Index tracked by CNN Money has risen from extreme fear levels to the current point at 52. This is a sign that investors are getting a little greedy.
Historically, stock and cryptocurrency prices have performed well during periods of market greed. This also explains why the Nasdaq 100 Index is close to exiting its bear market.
Meanwhile, LTC jumped as investors speculated that the selloff earlier this month has faded. For one, the transition from what most people were hoping didn’t happen after the crash of Celsius, Voyager Digital, and Three Arrows Capital.
Furthermore, on-chain data shows that activity in Litecoin’s network has been increasing over the past few days. For example, the number of LTC addresses has skyrocketed over the past few weeks, although they are well below their 2021 highs.
Litecoin price prediction
The daily chart shows a strong correction in LTC price over the past few weeks. This recovery started when the coin fell to a low of $40.59 this year. It has now managed to move slightly above the 25-day and 50-day moving averages, while the MACD has moved above the neutral point. The two moving averages have also formed a bullish crossover.
Hence, the coin is likely to rise as the bulls target the crucial resistance point at $92.11, which was the lowest level since April this year. A move below the $50 support would invalidate the bullish outlook.