- LTC price forms an inverse head-shoulders pattern, hinting at a 27% upsurge.
- Though the bullish stance, multiple substantial obstacles plague LTC’s journey to $167.05.
- Breaching the support floor at $103.82 will cancel Litecoin’s optimistic case.
Litecoin price saw roller-coaster actions within the previous month. Though the alt lost a considerable market value, it appears to form a bullish reversal setup, confirming an imminent breakout. Also, the current bullish wave in the crypto spectrum backs LTC’s new upsurges.
LTC Price on a Decisive Moment
Litecoin’s price movement from 24 December 2021 had the altcoin creating an inverse head-shoulders formation. The technical setup comprises two swing lows (shoulder) and a central ravine deeper than others (head).
The pattern projects a 27% upward move to $75.70, drawn through adding distance from the neckline and lowest zone of the pattern’s head to the breakout level. Market players can expect a breakout near $137.43 due to the sloped neckline.
Though this narrative presents bullishness, Litecoin will meet obstacles near $143.88, $153.49, and $167.06. These hurdles threaten LTC’s upside movements.
The 365-day MVRV (Market Value to Realized Value) model supports LTC’s bullish case. The metric determines average loss/profits by market players that bought the alternative token within the last year.
As the index hovers at -25.90%, it shows that most holders that accumulated LTC within the last year incur losses. Meanwhile, long-term holders usually buy at this zone. Therefore, the metric shows that Litecoin hovers within an opportunity level, and a potential reversal is likely.
Also, IntoTheBlock’s GIOM mode adds credence to LTC’s technical viewpoint. The index suggests that Litecoin’s nearest resistance is weak. It also indicates that $1.44.05 may cap the token’s upside, the level where around 600,220 addresses that bought about 10.91 million coins are out of money.
That way, a near-term surge in buying momentum may face a dead end since holders in this region may decide to break even.
As things seem up for LTC, losing the three-day demand region in the $103.82 – $124.06 range will complete a lower low, canceling the optimistic case. That way, Litecoin might dip lower towards the support of $93.96.