The crypto rally that we saw over the last two weeks has finally taken a breather. Most coins appear to have retreated a bit, while others have traded sideways for most parts of this week. Litecoin (LTC) is not any different. The coin has fallen around 5% in the last 24 hours. Here are the recent developments:
LTC’s pullback comes even as on-chain data shows increased activity
The coin has rallied quite substantially from its lowest point this year.
We expect LTC to consolidate in and around $120 before the next leg up.
Data Source: Tradingview
Litecoin (LTC) – Understanding the price action
One thing that should give LTC investors a lot of hope is the fact that on-chain activity is quite impressive. Transaction volumes remain high and this can only be a positive for the future. It is, therefore, safe to deduce that the recent slowed momentum has largely been influenced by the broader movement in the market.
But despite this, there are a few bearish signs, especially in the short term. For instance, LTC has fallen slightly from its 50-day SMA. Momentum indicators also point downwards. However, we do not expect any sharp fall.
In fact, LTC is likely going to consolidate in and around $120. Even if somehow the retreat continues, we expect the coin to find strong support at $116. After that, Litecoin will resume its uptrend and could hit $200 in the second quarter.
Is Litecoin (LTC) a good investment?
Yes, if you want to build a good portfolio of crypto assets, then LTC will be a worthwhile consideration. As for the short term, there is still a lot of upside potential for LTC.
Just give it time to consolidate and once it falls to around $116, consider buying. The coin is likely to continue its bullish run in the near term.