Litecoin (LTC) price recovered after several days of weakness and saw a 30% drop.
However, it is questionable how far Litecoin's potential recovery will go as investor participation increases.
Litecoin bullish signal occurs
Litecoin’s price is showing potential recovery considering its recent decline. The Relative Strength Index (RSI) and Moving Average Convergence Divergence (MACD) are positive signs.
RSI measures the speed and changes in price movement, while MACD indicates trend direction and momentum strength through the convergence or divergence of moving averages.
The former has surpassed the neutral line of 50.0 and is about to take a bullish turn. MACD is also currently trending upward, which could lead to a recovery for Litecoin.
Investors also appear very optimistic about the recovery. Over the past 72 hours, the chain's total trading volume has surged for the first time in nearly a year.
Read more: How to Buy Litecoin (LTC) and Everything You Need to Know
A total of $9.27 billion worth of transactions were recorded each day, a 168% increase over average volume. This shows that interest is growing among Litecoin holders , which could support the expected recovery.
Litecoin Price Prediction: Next Target to Break $86?
The price of Litecoin is trading at $81 after rebounding from the local support level of $77 over the past few days. At the time of writing, the altcoin has nearly flipped from $115 to $57, the 38.2% Fibonacci retracement level. This support marked at $79 will provide the strength for LTC to break above $86.
The 50% Fibonacci level coincides with this price, and a return to this as support would confirm the recovery rally.
Read More: Litecoin (LTC) Price Prediction for 2024/2025/2030
However, loss of the $79 and $77 support would likely push the price of Litecoin lower, testing the 23.6% Fib level of $71. This would invalidate the bearish logic, extending and potentially validating the 30% correction target of the rising wedge.
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