{"id":360386,"date":"2022-11-28T07:48:21","date_gmt":"2022-11-28T12:48:21","guid":{"rendered":"https:\/\/insidebitcoins.com\/?p=360386"},"modified":"2022-11-28T07:48:21","modified_gmt":"2022-11-28T12:48:21","slug":"litecoin-price-prediction-three-reasons-why-ltc-may-return-to-100","status":"publish","type":"post","link":"https:\/\/insidebitcoins.com\/news\/litecoin-price-prediction-three-reasons-why-ltc-may-return-to-100","title":{"rendered":"Litecoin Price Prediction: Three Reasons Why LTC May Return To $100"},"content":{"rendered":"

Litecoin (LTC) price started a recovery toward $100 as investors scrambled to seek a safe haven for their investments following the FTX-induced crash. However, the price was rejected by the $80 psychological level causing LTC to turn down to the current price of around $72. Due to the recent price downturn, the majority of LTC investors are in losses. However, for another move upward, Litecoin may need support from the wider market.\u00a0<\/span><\/p>\n

Here, an analysis of Litecoin\u2019s recent price action is presented giving reasons why an upside correction could be on the radar for the altcoin.\u00a0<\/span><\/p>\n

1. A Significant Support Zone<\/span><\/h2>\n

Litecoin started a recovery rally toward the $100 psychological level on November 22, recording an impressive 33% climb to brush shoulders with $83.5 on November 25. Buyers\u2019 attempts to pump the price higher were frustrated by overhead pressure from the $80 supply zone. At press time, the 13th largest cryptocurrency by market capitalization was trading below $75. Buyers were required to reclaim this level to rekindle any hopes of restarting the uptrend.\u00a0<\/span><\/p>\n

LTC was trading above an important support area stretching from $57 and $60. Traders will notice that all the important moving averages are lying within this zone. The 50-day simple moving average (SMA), the 100-day SMA and the 200-day SMA are sitting at $59.73, $57, and $58 respectively. Buyer congestion in this zone is likely to provide Litecoin price with the tailwinds it requires to propel it upward.<\/span><\/p>\n

Therefore, if LTC turns up from the current level, it could confirm the beginning of an uptrend that is likely to take the proof-of-work (PoW) crypto first above the immediate resistance at $75, and then to the $83.5 swing high. Above that, Litecoin could rise to confront resistance from the $100 psychological level, representing a 14.8% ascent from the current price.<\/span><\/p>\n

LTC\/USD Daily Chart<\/b><\/p>\n

\"Litecoin<\/p>\n

2. Bullish Technical Indicators<\/span><\/h2>\n

Apart from the significant demand zone, technical indicators on the daily chart supported Litecoin\u2019s positive outlook. The Relative Strength Index (RSI) was moving within the positive region suggesting that the market still favored the upside. Moreover, this momentum strength indicator was positioned at 60, suggesting that LTC was still under the control of buyers, adding credence to the bullish outlook.<\/span><\/p>\n

Another indicator validating the positive forecast for LTC price was the position of the Moving Average Convergence Divergence (MACD) indicator above the zero line in the positive region. This indicated that Litecoin\u2019s market sentiment was still positive. In addition, the movement of the 12-day exponential moving average (EMA) (blue line) above the 26-day EMA added credence to the crypto\u2019s positive outlook.<\/span><\/p>\n

Furthermore, the technical indicators had previously sent two bullish signals in the recent past which were still in play. The first one came from the SuperTrend indicator which reversed from red to green and moved below the price on November 23. This index, like the moving averages, overlays the chart while tracking LTC\u2019s trend. It incorporates the average true range (ATR) in its calculations, which helps gauge market volatility. As long as the index is green and stays below the price, bulls are likely to remain in an advantageous position.<\/span><\/p>\n

Another buy signal came on November 24 when the 50-day SMA crossed above the 200-day SMA. Thus, as long as the golden cross stands, it is imperative to say that the Litecoin price is squarely in the buyers\u2019 hands.<\/span><\/p>\n

3. GIOM Metrics<\/span><\/h2>\n

The daily chart above showed that Litecoin was trading above a relatively strong support zone. Included within this area were the moving averages located between $57 and $60. Further down, bears would be confronted by buying pressure from the psychological level at $55, besides the $54 foothold.<\/span><\/p>\n

This was supported by on-chain metrics from IntoTheBlock\u2019s Global In\/Out of the Money (GIOM) model, which showed that LTC sat on relatively robust support. For example, all the lines of defense outlined above are within the $54.7 and $60.70\u00a0 price range, where approximately 12.6 million LTC are being held by roughly 842,900 addresses.<\/span><\/p>\n

Litecoin GIOM Chart<\/b><\/p>\n

\"Litecoin<\/p>\n

Any attempts to push the price below the said level would be met by buying from these investors who may want to increase their profits. The ensuing demand pressure would cause Litecoin to rise even higher.<\/span><\/p>\n

4. Positive Comments and Fundamentals<\/span><\/h2>\n

Litecoin’s upward trajectory may also be fueled by positive comments about the altcoin from crypto Twitter. For example, a trader going by the name JK on Twitter spotted that the LTC price action had formed a double-bottom against Ethereum on the daily chart. He posted an LTC\/ETH chart on Sunday saying, \u201cLitecoin LTC completed double bottom to gain 65% against ETH in November.\u201d<\/span><\/p>\n

This was confirmed by a veteran trader Peter Brandt who, drawing from his approximately five decades of trading, hailed JK\u2019s \u201ccorrect interpretation of classical chart patterns\u201d.<\/span><\/p>\n

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Always great to see the correct interpretation of classical chart patterns. Thanks JK https:\/\/t.co\/RQUnvn2BHM<\/a><\/p>\n

— Peter Brandt (@PeterLBrandt) November 27, 2022<\/a><\/p><\/blockquote>\n