- One model shows immense support and weakening of resistance for Litecoin in the short term.
- A separate ratio has been rolled back into negative territory, suggesting it is time to buy into LTC.
- Litecoin hit a barrier at 100 SMA on the four-hour chart, giving way to the ongoing correction.
Litecoin kept the uptrend after the support around $ 170. Support for the lower bound of the parallel descending channel strengthened the level and resulted in gains towards $ 200. A break above the upper limit resistance confirmed a rally to USD 200. However, the 100 Simple Moving Average (SMA) on the four-hour chart resistance has canceled the rally.
Litecoin is aiming for higher support to keep the uptrend going
The 200 SMA provided immediate assistance. Litecoin is exchanging hands at $ 192 at the time of writing. The Relative Strength Index (RSI) shows that LTC is gradually falling into the hands of the bears.
If support at the 200 SMA remains intact, Litecoin will continue the previously staged rebound for gains above $ 200. A step above the 100 SMA would confirm the optimistic outlook and trigger buy orders if speculation about returns towards record highs is made.
LTC / USD four hour chart
Santiment’s on-chain fair value to realized value (MVRV) metric has been reset from a 30-day high of 12.6%. At the time of writing, the MVRV is 8.97% which means most Litecoin holders are at a loss. In other words, investors are unlikely to sell until they break even and get a sizeable return on investment. Therefore, Litecoin is back in the buy zone and offers the opportunity to enter the market or increase a share.
Litecoin MVRV model
Litecoin’s lively bullish outlook was also confirmed by robust support from the IOMAP model. This anchor zone ranges from $ 185.2 to $ 190.5. Around 168,000 addresses have previously bought around 4.24 million LTC here. It would not be easy to break this support and thus confirm the upswing towards a record high.
Attenuation resistance was observed on the top using the IOMAP model. Our attention is drawn to the region between $ 196.7 and $ 202.26. Around 95,000 addresses have bought 1.8 million LTC here. If the above technical analysis is correct and Litecoin fluctuates above this zone, buy orders are likely to be triggered, putting pressure on the tailwind.
Litecoin IOMAP model
Look at the other side of the picture
It’s worth noting that Litecoin may continue to fall due to the resistance at 100 SMA. Additionally, if the 200 SMA support doesn’t hold, the bearish leg would continue to stretch. On the other hand, support is provided at the upper limit of the ascending channel. When it comes down to it, the 50 SMA is tested.