The Litecoin (LTC) price is having a difficult time rising to higher levels. It is likely that LTC holders will begin to sell for now despite receiving continued support from new investors.

Litecoin investors seem negative

Litecoin price has recovered some of the losses it suffered recently. However, this recovery may come to a halt when looking at the Market Value to Real Value (MVRV) Index, which measures investors' profits and losses.

Currently, Litecoin's 30-day MVRV is at 20%, indicating profitability and potential selling pressure. History shows that LTC typically corrects when MVRV is between 10% and 28%, known as the danger zone.

Litecoin MVRV Rate | Source: Santiment

On the other hand, new investors are still showing positive signs. As evidenced by the new adoption rate, the number of new addresses making transactions on the network compared to active addresses remains high.

At 68%, almost all investors joining the network are new investors, signaling solid network growth. This would be the opposite of the pessimism being brought about by LTC investors currently.

Litecoin adoption rate | Source: IntoTheBlock

LTC price prediction: Potential sideways

Litecoin price is likely to remain in a state of consolidation in the near term. The reason behind this comes from two factors.

LTC/USDT Daily Chart | Source: TradingView

The first factor is the metrics mentioned above, which represent a neutral approach.

Second is the fact that LTC has flipped the 23.6% Fib Retracement level as support. This level is known as the support floor for price declines as it tends to prevent any price decline. This should support sideways price action, with consolidation between $79 and $71.

If Litecoin price loses support at $71, a decline could take it to $69. Loss of this level will invalidate the neutral thesis and send the price down to $61.

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