- Litecoin’s market indicators suggest a potential rise towards its 2021 high.
- Investors’ willingness to hold onto LTC and the Pi Cycle Top indicator show the coin is not yet overheated.
- The Reserve Risk, also known as the “HODL bank”, indicates a strong conviction in the long-term value of Litecoin.
Litecoin’s market indicators and investor behavior suggest a potential rise towards its 2021 high, providing a rare accumulation opportunity for traders.
Litecoin’s Potential Rise
Litecoin [LTC] is currently trading at $80.61, a 15.60% correction in the last 30 days. Despite this, AMBCrypto’s assessment of Litecoin’s Reserve Risk indicates that better days are ahead. The Reserve Risk, also known as the “HODL bank”, is a metric that shows whether long-term holders are confident in the price. A rising Reserve Risk and a low value indicate a strong conviction in the long-term value of the coin, and this is currently the case with Litecoin.
Signs of Expansion
The Pi Cycle Top indicator, which includes the 111-day Simple Moving Average (SMA) and the 350-day SMA, suggests that Litecoin still has room to grow. Historically, prices peak when the shorter SMA reaches the same level as the larger SMA. Currently, the 111-day SMA is at a lower point compared to the 350-day SMA, indicating that LTC still has a lot of room to grow before the end of the bull market. This, combined with the negative reading of the price-DAA divergence, suggests that Litecoin’s price grew more than the active addresses in recent times, providing a buy signal for traders.
Conclusion
While the immediate future of Litecoin is not certain, the current market indicators and investor behavior suggest a potential rise towards its 2021 high. This provides a rare accumulation opportunity for traders. However, market participants should watch out for complementary metrics before making a decision.
