Can Litecoin break the resistance and reach 400 USD?
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Litecoin (LTC) recently broke through a multi-year symmetrical triangle pattern, ending a long-term consolidation and showing strong bullish momentum. As of the time of writing, LTC is priced at 112.32 USD, slightly up by 0.86% in the last 24 hours. This breakout has sparked market interest in whether it can rebound to 400 USD, but key resistance levels and on-chain data still need to be tested.
Technical Analysis: Clear Bullish Momentum
Key Resistance Levels:
136 USD and 232 USD are the main targets. A breakout will further enhance upside potential.
Technical Indicators:
RSI (Relative Strength Index): Currently 61, bullish but not overbought.
9-day and 21-day moving averages have crossed, confirming a trend reversal.
Market Structure:
The symmetrical triangle breakout indicates active buying, further supporting bullish expectations.
On-Chain Data: Contradictory Signals
Bullish Signals:
In-the-money holdings: Increased by 1.15%, more holders are in profit, boosting market confidence.
Whale concentration: Increased by 0.13%, indicating rising interest from whales.
Warning Signals:
New address activity: Decreased by 0.37%, weak network growth.
Large transactions: Decreased by 3.22%, suggesting institutional funds are on the sidelines.
MVRV Ratio and Price-DAA Difference:
MVRV Ratio: Currently 25.41%, indicating reasonable valuation with no overbought risk.
Price-DAA Difference: -71.57%, showing that address activity has not kept pace with price increases, raising potential volatility risk.
Outlook and Challenges
Short-term Goal: Breaking through the resistance at 136 USD and 232 USD is key for further upward movement.
Long-term Potential: Continued network activity and institutional participation will determine whether it can reach 400 USD.
Risk Factors: If network growth and activity do not strengthen, prices may be hindered by key resistance levels.
Conclusion: Is the 400 USD target achievable?
Litecoin's recent technical breakout and bullish momentum suggest it has further upside potential. However, the contradictory signals from on-chain data and the test of resistance levels still require attention. If market momentum continues and key resistance is overcome, Litecoin may aim for 400 USD, but investors should be mindful of short-term volatility and changes in on-chain dynamics.
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