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Can Litecoin hit $400 after breaking THIS resistance? Assessing…
Litecoin’s recent breakout from a multiyear triangle pattern has sparked optimism among traders, but key resistance levels and mixed on-chain metrics are set to test its rally potential.
As LTC breaks out of the symmetrical triangle, it appears poised to challenge critical resistance levels at $136 and $232. This upward trajectory could, in theory, propel Litecoin towards a target price of $400. However, navigating these hurdles will be crucial for sustaining momentum.
From a technical perspective, Litecoin’s breakout is fueled by strong buying pressure and indicators suggest a continued rally. The Relative Strength Index (RSI) remains below overbought conditions, indicating a promising opportunity for further growth. Additionally, the 9-day and 21-day moving averages have recently formed a bullish crossover, confirming the trend reversal.
On-chain metrics provide a mixed outlook on Litecoin’s potential price action. While the “in the money” metric has seen a slight increase of 1.15%, indicating growing profitability among holders and investor confidence, concentration metrics reveal a modest uptick in large holder interest at 0.13%. Notably, net network growth lags behind at just 0.37%, categorized as bearish, and large transactions have decreased by 3.22%, hinting at potential hesitation among institutional players.
A crucial factor in the outcome will be the MVRV ratio, currently sitting at 25.41%, which suggests a moderate valuation, leaving room for further gains without imminent risk of overbought conditions. Conversely, the divergence between Litecoin’s price and daily active addresses (DAAs) at -71.57% raises concerns about potential volatility if network activity fails to catch up with the recent price surge.
In conclusion, while Litecoin’s technical indicators suggest a promising upward trajectory towards $400, it is essential to navigate resistance levels and mixed on-chain metrics. Sustained momentum and increased network activity will be critical in determining its success.
Source: ambcrypto.com
