Litecoin Price Forecast: LTC’s 70% upswing depends on this key demand barrier – FXStreet

• Litecoin value dropped 37% because it acquired rejected by the ascending parallel channel’s higher trendline on February 20.
• Now, LTC is present process a pullback earlier than it sees a 70% upswing.
• Nevertheless, if LTC value manages to slice via $161, a 36% crash might be anticipated.

Litecoin value just lately bounced off the $153 degree, creating the third decrease low for an ascending parallel channel. As a result of latest promoting strain, LTC’s upswing has taken a success leading to a small pullback.

Litecoin value corrects earlier than a bull rally

Litecoin price shaped two swing highs and three swing lows between January 10 and February 28. An ascending parallel channel might be obtained by connecting the pivot factors utilizing trendlines. Such a setup’s goal might be decided by measuring the channel’s peak and including it to the breakout level at $161, which locations LTC at $102.

Nevertheless, Litecoin value hasn’t breached the trendline but, and if historical past is any indication, a bounce from the channel’s decrease trendline appears doubtless. Moreover, the100 twelve-hour shifting common (MA) is performing a requirement barrier absorbing any short-term promoting strain.

Subsequently, a bounce from the channel’s decrease trendline will play a essential position in value reversal that might push Litecoin by 70% towards $279.

LTC/USDT 12-hour chart

Supporting this bullish outlook is Santiment’s 30-day market worth to realized worth (MVRV) mannequin, which has flashed a “purchase sign.” The final time Litecoin’s MVRV was -15%, its value noticed a 97% improve within the subsequent 50 days. Subsequently, this on-chain metric dampens any bearish bias and provides credence to the bounce from the important thing demand barrier at $161.

Litecoin MVRV 30-day chart

Nevertheless, buyers ought to word {that a} spike in promoting strain resulting in a 12-hour candlestick shut beneath $161 will invalidate the bullish thesis. In such a case, Litecoin value might be anticipated to crash 35% in the direction of the $102.

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