Litecoin Price Forecast: LTC bulls aim for higher highs
Litecoin price trades higher on Monday after retesting its key support level the previous week. The technical outlook and LTC’s long-to-short ratio suggest a rally ahead. Traders should remain cautious as LTC’s NPL metric indicates holders are taking some profit. Litecoin (LTC) price pops higher by over 8% and trades around $116.00 at the time of writing on Monday after retesting its key support level the previous week. The technical outlook and LTC’s long-to-short ratio suggest a rally ahead. However, traders should remain cautious as LTC’s Network Realized Profit/Loss (NPL) metric spiked, indicating holders are taking some profit, which could increase the selling pressure. Litecoin price poised for a rally as it retested key support level Litecoin price declined and retested its 200-week Exponential Moving Average (EMA) at $86.22 during the first half of last week and bounced, closing above its weekly support level at $96.30 in the second half. Moreover, it retested and bounced from the descending trendline drawn by connecting weekly highs since the end of March 2022. At the time of writing on Monday, it continues to trade higher around $116.63. If LTC continues its recovery, it could extend its rally to retest its December 5 high of $147.06. The Relative Strength Index (RSI) on the weekly chart reads 57, above its neutral level of 50, indicating a rise in bullish momentum. LTC/USDT weekly chart Another bullish sign is Coinglass’s LTC long-to-short ratio, which reads 1.07 and has continued increasing since early February. This ratio above one reflects bullish sentiment in the markets as more traders are betting for the asset price to rise. LTC long-to-short ratio chart. Source: Coinglass However, traders should be cautious as on-chain data provider Santiment’s Network Realized Profit/Loss (NPL) indicator for LTC shows strong spikes. Strong spikes in a coin’s NPL indicate that its holders are, on average, selling their bags at a significant profit, which could increase the selling pressure. In LTC’s case, the NPL indicator spiked from 1.39 million to 51.59 million from Thursday to Friday. LTC Network Realized Profit/Loss chart. Source: Santiment Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page. If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet. FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted. The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.