Litecoin (LTC) is rallying towards the $100 mark after recovering from mid-March losses.
Bullish sentiment surrounds LTC, supported by the Reserve Risk metric indicating high investor confidence and the Relative Strength Index (RSI) signaling further price appreciation.
While LTC faces resistance at the $100 mark, recent support at $93 indicates a bullish trend
Litecoin (LTC) has been making headlines as it recovers from the bearish week in mid-March, which had investors bracing for potential losses. However, not only has LTC almost recovered its losses, but it is also approaching the $100 mark, a potential milestone in the near future.
As Litecoin’s price continues to rally, currently trading at $95, investors and analysts alike are closely monitoring the cryptocurrency’s performance, with many expressing confidence in its potential for further growth.
Litecoin’s Rewarding Outlook
Litecoin’s recent price action has reignited the bullish sentiment surrounding the asset, as evidenced by the Reserve Risk metric. This indicator is used to assess the risk associated with holding a particular cryptocurrency over time, and when it is in the green zone, the asset is considered to be rewarding, indicating high investor confidence.
Currently, Litecoin’s reserve risk is just below the green zone, suggesting that investors are becoming increasingly optimistic about the cryptocurrency’s future prospects. This positive sentiment is likely to drive more investors towards LTC, potentially pushing the price of the altcoin even higher.
RSI Suggests Further Price Appreciation
The RSI is currently below the 70.0 mark, suggesting that LTC is not overbought but rather in the bullish zone, ready for a potential price increase.
This technical indicator, combined with the positive market sentiment, reinforces the notion that Litecoin may be on the cusp of a significant breakout, with the $100 mark being a key psychological barrier that could soon be breached.
Despite the bullish outlook for Litecoin, there are potential obstacles that could hinder its path to $100 and beyond. After rallying by an impressive 22% in the last week, LTC managed to flip and test the 61.8% Fibonacci Retracement level as support. Traders consider this level, currently at $93, to be the bull run support floor, which typically serves as a bounce point for uptrends once established as support.
While this positions Litecoin in a bullish spot, with the next major resistance lying at $102, the potential for profits may keep investors on their toes and ready to sell.
This behavior is particularly evident among long-term holders (LTHs), as indicated by the liveliness metric. An increase in Liveliness suggests that LTHs are liquidating their positions, which could act as a resistance to Litecoin’s attempt to cross the $100 threshold.
