Litecoin (LTC) price has shown signs of recovery in the past few days following a week of losses in mid-March that were certain to cause investor distress.
Critical Metric for LTC
Moreover, LTC has not only nearly compensated for the losses but is also very close to reclaiming the $100 mark, which could happen soon.
At the time of writing, Litecoin’s price is trading around $95 and is among the top-performing cryptocurrencies. The recent rally has reignited the upward trend surrounding the token, clearly visible in the Reserve Risk metric. Reserve Risk is an indicator used to analyze and assess the risk of holding a particular cryptocurrency over time. When the indicator is in the bullish zone, it is considered rewarding to hold the token due to high investor confidence. Currently, the situation is the same for Litecoin, with Reserve Risk just below the bullish zone. This could effectively boost the LTC price by directing investors towards it.
Furthermore, as observed in the Relative Strength Index (RSI), further increases in the altcoin’s price could be expected. RSI is a momentum oscillator that measures the speed and change of price movements, indicating whether a token is overbought or oversold. Since LTC is still below the 70.0 level, it is not overbought but may be preparing for an upward move.
Current Data on LTC
Litecoin price has managed to turn the 61.8% Fibonacci retracement level into support and test it after a 22% increase over the past week. Investors can mark this level at $93 as a bull run support base, which once served as a springboard for upward trends.
This places Litecoin’s price at a point of ascent, with the next major resistance found at $102. Given these conditions, it wouldn’t be surprising if LTC attempts a bounce and manages to overcome the barrier, which could help the altcoin surpass $100. However, the potential for profit may keep investors on alert and ready to sell. This seems to be the intent of long-term holders (LTH), as indicated by liveliness, a measure used to assess the position of LTH. An increase in liveliness could signal that long-term holders are liquidating their positions.
