Litecoin Gearing Up for a Bullish Breakout: Time to RideLitecoin Gearing Up for a Bullish Breakout: Time to Ride the Trend?
The investors and traders have turned optimistic about Litecoin after a recovery was noted in the recent sessions.
Positive MVRV ratio and rising social metrics indicate a potential for rise in the crypto.
Litecoin (LTC) traders and investors have turned optimistic after the price noted a strong rebound in the recent sessions. Litecoin made a strong recovery adding nearly 10% in the recent sessions.
Amid the recent recovery, the bulls seem to be regaining control at the lower levels and the price may head for a bullish breakout. The daily chart highlights the formation of an interesting channel with a potential breakout that would mark the end of a correction phase.
Litecoin Gains Boost Investor Returns
In tandem with a rebound in the price in the recent sessions, a significant development was recorded in an important metrics: MVRV ratio as per Santiment.
MVRV ratio is an on-chain metrics that evaluates the market's profitability. It indicates whether the investors may get profit or loss if they liquidate their holdings at the moment. It also helps to identify when the price is overvalued and when it is undervalued.
As of now, the 30-day MVRV ratio was at 30.1%. It suggests that if every holder liquidates their positions at the moment they would yield a positive gain of nearly 30% on their investments. Moreover, the 7-day MVRV ratio was 103% indicating a more percentage of holders sitting at unrealized gains.
Both the 7-day as well as 30-day MVRV ratio curve were placed above in the bullish territory, suggesting the Litecoin holders enjoyed a positive return on their investment.
Furthermore, the social metrics like social dominance and social volume curve were headed higher indicating the increasing participation of the social media users. The community sentiment indicates 69% bullish biasness indicating a possible price rebound.
Can Litecoin Mark A Bullish Reversal Next Month?
The recent rebound in Litecoin price indicates a short term bullishness in the crypto, however, the long term trend still awaits to claim a bullish territory. The volume to market cap ratio at 6.6% suggests mild volatility.
From a technical perspective, LTC has surpassed the 20 and 50 day EMA indicating a bullishness. Moreover, the daily chart highlights the formation of a declining parallel channel pattern with the price hovering close to the upper boundary intending a breakout scenario.
On the higher side, the breakout of the declining channel above the $68 level would mark a bullish reversal in the crypto and the price may resume its journey towards north.
On the contrary, if the bearish pressure exceeds and the price breaks below the $60 level, it may invalidate breakout scenarios and the price may extend the losses again maintaining the preceding correction phase.
Litecoin (LTC) made a strong rebound, gaining nearly 10% recently. The 30-day MVRV ratio is at 30.1%, indicating potential 30% gains if holders liquidate now, while the 7-day MVRV ratio is 103%, showing high unrealized gains. Social metrics are also positive, with 69% bullish sentiment.
From a technical perspective, LTC has surpassed the 20 and 50-day EMAs, suggesting short-term bullishness. A breakout above $68 could signal a bullish reversal, while a drop below $60 may continue the correction phase. The volume to market cap ratio at 6.6% indicates mild volatility.
