- The Litecoin value rally has been showing a consolidation in an ascending parallel channel for almost 4 months.
- The retirement barrier between $ 296 and $ 317 could end the upswing.
- LTC can retrace 10% if rejected from the resistance range above.
The Litecoin value is approaching an important level that could determine its development for the foreseeable future.
Litecoin value blocked
On the 1-day chart, the Litecoin value beats in an ascending parallel channel obtained by connecting the development tracks with a series of major highs and better lows since January 2021.
So far, your entire bull run for LTC appears to be wrapped up on this technical formation as it approaches the higher trendline. Still, a six-hour staging zone of $ 296 to $ 317 will get in the way.
A rejection of this resistance barrier could cause LTC to fall 15% to $ 247.
Since the downward development line of the ascending parallel channel lies above the demand zone, a rebound could possibly be triggered beforehand.
LTC / USDT 1-day chart
IntoTheBlock’s World In / Out of the Cash (GIOM) mannequin helps with a rejection within the above resistance zone, showing a row of underwater buyers for $ 310. Below are around 94,500 addresses that have purchased 845,000 LTC, “Out of the Cash”. . As a result, the Litecoin value of buyers who may wish to break even may face another beneficial burden.
LTC GIOM chart
Additionally, the 30 day MVRV mannequin tracking sales / shortage of LTC buyers who bought LTC in the last month shows it is approaching a 13% area top.
At the time of writing, this metric shows that roughly 10% of market participants are generating revenue. Nonetheless, the last time MVRV approached 13% three times, LTC suffered a pullback.
Hence, the same opportunities can lead LTC to break the fast demand barrier.
LTC 30 Day MVRV Chart
While both technicals and metrics within the chain represent a rejection, a possible spike in post-stress shopping that pushes Litecoin value to a key close above $ 317 will dent the bearish outlook.
Additionally, this could convert the underwater buyers into revenue and signal a continuation of the upward momentum to native highs at $ 335.69.
With an additional accumulation of bid orders, this cryptocurrency can rise to $ 400 and hide the higher line of development of the ascending parallel channel.