Litecoin Gearing Up For Bullish Breakout: Time To Ride The Trend?

Litecoin (LTC) traders and investors have turned optimistic after the price noted a strong rebound in recent sessions. The crypto made a strong recovery, adding nearly 10% in the recent sessions.

Amid the recent recovery, the bulls seem to be regaining control at the lower levels, and the price may head for a bullish breakout. The daily chart highlighted the formation of an interesting channel with a potential breakout. This potential breakout would mark the end of a correction phase.

Litecoin Price Rise Boosts Investor Returns

Per Santiment, a significant development was recorded in an on-chain metric: MVRV ratio alongside the recent rebound in the price.

The MVRV ratio is an on-chain metric that evaluates the market’s profitability. It indicates whether the investors may get profit or loss if they liquidate their holdings. It also helps to identify when the price is overvalued and undervalued.

Source: app.santiment.net

At press time, the 30-day MVRV ratio was at 30.1%. It suggested that if every holder liquidates their positions, they would yield a positive gain of nearly 30% on their investments. Moreover, the 7-day MVRV ratio was 103%, indicating a higher percentage of holders sitting at unrealized gains.

The 7-day and 30-day MVRV ratio curves were placed above the bullish territory. It suggested that the LTC crypto holders have enjoyed a positive return on their investment.

Can Litecoin Mark A Bullish Reversal Next Month?

The recent rebound in Litecoin price indicated a short-term bullishness in the crypto. However, the long-term trend has been awaiting to claim a bullish territory. The volume-to-market cap ratio of 6.6% suggested mild volatility.

From a technical perspective, Litecoin has surpassed the 20 and 50-day EMA, indicating a bullishness. Moreover, the daily chart highlighted the formation of a declining parallel channel pattern.

This was accompanied by the LTC price hovering close to the upper boundary, intending a breakout scenario. On the higher side, the breakout of the declining channel above the $68 level would mark a bullish reversal in the crypto. Also, the price may resume its journey toward the north.

On the contrary, if the bearish pressure exceeds and the price breaks below the $60 level, it may invalidate breakout scenarios. The price may extend the losses again, maintaining the preceding correction phase.

Litecoin rebounded strongly, gaining nearly 10% recently. The 30-day MVRV ratio was 30.1%, indicating potential 30% gains if holders liquidate.

Conversely, the 7-day MVRV ratio has been 103%, showing high unrealized gains. Social metrics were also positive, with 69% bullish sentiment.

LTC has crossed above the 20 and 50-day moving averages (EMAs), indicating short-term bullishness. A breakout above $68 could signal a bullish reversal, while a drop below $60 may continue the correction phase.

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