Litecoin’s Bullish Signal is Back, Signaling Another ATH
LUCKNOW (CoinChapter.com)—Litecoin has lined up a bullish signal that could see the price of LTC rally to a new ATH. The signal last appeared just before Litecoin rallied to its record high.
The token, often called the “silver” to Bitcoin’s “gold,” had a volatile March, rising to a high near $104 on March 11 before dropping to a low near $79 just 10 days later.
However, LTC prices have been rallying since March 21, spiking 22% to reach a daily high near $97 on March 27 before paring gains.
The Coin Lines Up Bullish Technicals
A key indicator working in favor of Litecoin is the ‘LTC revived supply 5+ years.’
The on-chain metric shows the number of LTC tokens that have been dormant in wallets for more than five years and are on the move again. The token’s movement indicates that long-term holders are now active, which can affect the market.
Selling a large amount of these long dormant coins could increase the supply and possibly lower the price. However, if this movement indicates rising interest or investment, it might boost demand and the price. The actual impact depends on the activity’s scale and how the market views it.
The last time LTC’s revived supply (5+ years) spiked was in Dec. 2017, when the markets saw an inflow of 150,100 tokens from 5+ year dormant wallets. What followed was a bull run that saw LTC price rocket 543% from Dec. 7, 2017, to reach its then-ATH near $373 on Dec. 19, 2017.
Moreover, a spike in the on-chain metric preceded LTC price’s 2021 rally to its current ATH.
Currently, the token’s revived supply (5+ years) reached a record high in early March 2024. If the historical pattern holds, LTC price might be gearing up for a bull run that could see Litecoin break above the $400 price level with some confidence.
Interestingly, LTC is trading in a price range similar to where it was in Dec. 2017, when it painted its first ATH.
LTC Moving Inside Bullish Chart Pattern
Adding to the bullish cues in its favor, the Litecoin token has formed a bullish technical pattern called the ‘Ascending Triangle‘
Historically, a horizontal trendline connecting swing highs and an ascending trendline connecting swing lows form an ascending triangle pattern. Volume helps determine whether a breakout is strong. Under ideal conditions, buyers would enter the market as the trendlines close the gap.
As a result, the token’s price would push above the horizontal resistance with heavy volumes.
Per the rules of technical analysis, the price target for a breakout is equal to the triangle’s height at its thickest point. If the triangle pattern pans out, LTC price has a theoretical price target near $249, a spike of over 165% from current levels.
Above all, it is unlikely that the Litecoin token price would rally immediately to the pattern’s target after a successful breakout. Yet, the pattern could attract buyers to the market, helping Litecoin’s bullish run.
The post Litecoin’s Bullish Signal is Back, Signaling Another ATH appeared first on CoinChapter.
Filed under: Bitcoin - @ March 28, 2024 12:56 am