Litecoin (LTC) price is up 11% in three days, but technical indicators indicate the rally is not over yet. The number of short-term holders holding LTC is also growing steadily, signaling increased interest among traders in the coin.

Litecoin (LTC) RSI is approaching the overbought zone

Over the past two weeks, the Litecoin RSI has risen from 60 to the current level of 67. This indicator serves as a critical technical analysis tool, acting as a momentum oscillator. However, It measures the speed and change in movement of an asset on a scale from 0 to 100, based on recent price increases and decreases.

The recent rise in the RSI indicates a surge in buying pressure, indicating increased investor interest and a more active market. However, it is important to note that the index is approaching the overbought zone, signaling the possibility of entering a consolidation phase or a short-term pullback.

The number of Litecoin holders continues to grow

According to the analytical platform IntoTheBlock, between February 18 and March 25, the number of short-term LTC holders grew from 429 thousand to 529 thousand. Moreover, It was this cohort of investors that became the driving force behind the current rally.

However, this surge in activity also has a potential downside. Medium-term holders who hold the cryptocurrency for more than a month and less than a year are showing signs of retreat. Over the same period, their number fell from 2.74 million to 2.54 million. This shift towards short-term investors could have a two-fold impact on the LTC price. This group of holders is known for their rapid buying and selling, so their actions will potentially lead to increased volatility.

LTC price forecast: consolidation above $100

Litecoin’s recent price surge may just be the beginning. The short-term EMA lines crossed above the long-term EMA lines, forming a rare technical “golden cross” pattern. Typically, this figure appears in anticipation of growth.

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At the writing time, LTC’s price is at $90.86. Given the influx of short-term traders and the favorable location of the EMA, LTC returning to $105 in the coming days looks like a very realistic scenario. If this happens, the asset could continue to rise and reach $115 by next week. However, a breakdown of the important support level of $83 will lead to a change in the trend to bearish and a further fall to $72.

The post Will Litecoin (LTC) Reach $115 By Next Week? first appeared on The VR Soldier.