- Litecoin (LTC) is getting ready to flip its bearish technical indicators as it prepares for a 20% surge.
- A bull rally is based on the technical set, the potential for an LTC ETF, institutional investment, and the upcoming BTC halving.
Litecoin (LTC) is poised for a bullish bounce with the potential for a 20% upswing. Technical indicators have in recent weeks cast a bearish shadow but the altcoin is seemingly staging a reversal. Some metrics have suggested that LTC is undervalued, making it an easy pick for investors.
At the time of writing, LTC is trading for $103 after a marginal positive change in the last 24 hours. The 23rd-ranked altcoin has extended its weekly gains by 6%.
Crypto expert World of Charts recently highlighted a bullish pattern forming around Litecoin. The analyst pointed out that LTC is moving in a bullish pennant pattern. If LTC breaks out of this pattern, this could lead to a 20% to 25% rally.
Data from Glassnode, a blockchain analytics platform, indicated a low Network Value to Transactions (NVT) ratio for LTC. Traditionally, a low NVT suggests an undervalued asset, potentially signifying an increased chance of a price rise.
Litecoin’s MVRV ratio and open interest have been down, putting the chances of an LTC rally low. However, with some of the metrics seeing an uptick, a reversal could be underway.
However, some technical indicators cast doubt on the bullish outlook. The Moving Average Convergence Divergence (MACD) generated a bearish crossover, and the Chaikin Money Flow (CMF) dipped, suggesting a potential continuation of the price decline.
Despite these bearish signals, the overall market sentiment might not be fully reflected yet. It remains to be seen if the previously mentioned bullish metrics can translate into a price increase, allowing LTC to recover in the coming days.
As CNF recently reported, The total number of wallet addresses of Litecoin increased by 1 million to hit 8 million after declining from its peak in November 2023. In addition, Santiment’s Total Amount of Holders chart monitors the net growth in the number of newly funded wallets on the Litecoin network, serving as a gauge for user acquisition and active investor participation.
At the end of February 29, the active Litecoin holders totaled 7.92 million. However, by March 25, this number had increased to 8.01 million unique addresses holding LTC. This surge represents a growth of 90,000 LTC holder wallets in March 2024 alone.
Another huge win for LTC is the recent classification as a commodity. As highlighted by CNF, the Commodity Futures Trading Commission (CFTC) classifies Ethereum (ETH) and Litecoin (LTC) as commodities in the KuCoin case. This classification could go a long way to seeing the altcoin garner institutional investment as well as the possibility of an LTC spot ETF approval. An approval could usher in a new wave of institutional investment as billions flow into the digital asset.
