Litecoin price posted double-digit gains as investors readjusted their portfolios in the wake of the crash this week. The four-hour time frame chart shows an ongoing V-shaped recovery that could see LTC achieve a 100% retracement to its highest level on Monday at $73.31.

It is worth mentioning that Litecoin price has already exhausted a 61.8% Fibonacci retracement at $64.28. Bulls must push the price to break and hold above this level to validate movement to $73.31.

The Moving Average Convergence Divergence (MACD) calls sidelined investors into the market as it inches closer to the mean line and possibly stretches into the positive region (above 0.00).

Meanwhile, investors who sold LTC as the crypto market bled this week are probably back to buy the token again, but at relatively lower prices. The Supply Distribution metric by Santiment shows that addresses with 10,000 to 100,000 now hold 18.10% of the network’s total supply, up from 18.01% recorded on November 8. Litecoin will likely strengthen its bullish outlook as whales intensify buying activities.

Traders should be aware of the prevailing short-term overbought conditions. The Stochastic oscillator in the four-hour time quickly recoiled from the oversold region (below 30.00) and is now in the overbought region at 96.57, as LTC rebounded from support at $49.55. Although a retracement could be in the offing, it is likely to be temporary because bulls may use the opportunity to collect more liquidity ahead of another strong upswing in price.

A push down before going up

Nov 15 2022