Litecoin (LTC) Price Recovers and Eyes $100: Here’s How

Litecoin price hitsLTC) hit a multi-month high in March after breaking the $100 barrier. However, the altcoin could not sustain this rally and ended in a 25% correction.

For now, investors are hoping to recover from these losses, and it looks like LTC could return to $100.

Litecoin is in a good position

Generally, after a correction, assets are considered to be in a downtrend, and the price action that follows is expected to be downtrend. However, Litecoin price appears to be moving in the opposite direction as the altcoin hints at a possible rise.

The first indicator of upside potential is the profit percentage offered. When this metric crosses the 95% threshold, or when 95% of the total circulating Litecoin supply is profitable, a market top forms. Currently, the total profit supply is only 58%.

This means that the crypto asset is far from saturated and still has plenty of room to grow.

Second, the reserve risk measure shows that silver, compared to Bitcoin gold, remains a profitable asset. Reserve risk is a metric used to analyze the price of an asset relative to the confidence of its long-term holders. This indicates the risk of long-term holders selling, affecting market stability.

When investor confidence is high and the price is low, this metric indicates that the risk/reward ratio is attractive. This is generally considered a bullish sign, indicating further growth potential. This is the current state of Litecoin, as the altcoin is not only in the green zone, but actually below it.

This means that LTCs are bound to accumulate, because the only way to progress in the long term is up.

LTC price forecast: 20% recovery expected

Litecoin price, which is trading at $85 at the time of writing, is below the 50-day EMA, which coincides with the $86 resistance level. This price corresponds to the 50% Fibonacci retracement from $113 to $58.

If investors continue to be optimistic in their movements, it is... LTC will likely be able to turn this resistance into support. This will allow the cryptocurrency to cross the 61.8% Fibonacci line set at $92. This level is also known as the uptrend support floor. A breakout will allow the price of Litecoin to continue rising towards $100.

However, if $86 is not breached and LTC struggles to break above the 50-day EMA, it will find itself falling towards $79. Missing this support would invalidate the bullish thesis, leading to a further pullback to $71.