Litecoin (LTC) has been one of the more resilient altcoins in the market, often standing strong against Bitcoin. However, the recent market downturn has hit LTC hard, dragging its price down to $95—a sharp 15% decline in just a week. This significant drop has fueled anxiety among traders, raising concerns about further downside risks.
MVRV Ratio Suggests Litecoin Could Rebound
Crypto analyst Ali Martinez remains optimistic about Litecoin’s recovery prospects. His analysis of the Market Value to Realized Value (MVRV) ratio suggests that LTC may still be in a strong position despite recent volatility. The MVRV ratio is a key metric used to determine whether an asset is undervalued or overvalued. A lower MVRV typically signals accumulation, while a higher ratio suggests profit-taking.
Martinez’s latest findings indicate that Litecoin’s MVRV ratio remains in a favorable range, even after testing the crucial $100 support level. This suggests that long-term holders are maintaining confidence, and selling pressure is not as intense as it may seem. If this trend holds, Litecoin could target a rebound toward $108 and potentially $117.
Litecoin’s Exclusion From Crypto Reserve Raises Concerns
Adding to market jitters, Litecoin was notably left out of the U.S. Crypto Strategic Reserve. This exclusion triggered bearish sentiment, leading to increased short positions against LTC. Many investors had hoped that Litecoin would be included, which could have provided a fundamental boost to its valuation.
Some investors are still holding out hope for a Litecoin ETF approval, but regulatory uncertainties loom large. Additionally, macroeconomic factors such as the upcoming White House summit and the U.S. Non-Farm Payrolls (NFP) report could heavily influence investor sentiment in the short term.
Key Support and Resistance Levels to Watch
With Litecoin now below the critical $100 mark, the risk of further losses remains if buyers do not step in soon. The price has fallen close to the lower Bollinger Band at $102.77, indicating oversold conditions and heightened volatility.
If Litecoin fails to reclaim $100, sellers could drive the price further down to the next major support level at $85. However, the Relative Strength Index (RSI) currently sits at 37.62, suggesting that LTC is nearing oversold territory, which could prompt a relief rally if buying interest resurfaces.
While bearish pressure dominates in the short term, key technical indicators point to a potential rebound if buyers return at crucial support levels. Traders should closely monitor market movements to assess whether Litecoin can recover in the coming days.
Disclaimer: The information in this article is for general purposes only and does not constitute financial advice. The author’s views are personal and may not reflect the views of CoinBrief.io. Before making any investment decisions, you should always conduct your own research. Coin Brief is not responsible for any financial losses.
Also Read: Litecoin Surges 7%: Eyes $200 Breakout Amid ETF Hype and Market Resilience
