Will the price of Litecoin increase in the near future?

[ad_1]

The price of Litecoin (LTC) is at key levels that could fuel a New Year’s bull run. Analysts examined LTC’s on-chain data to better understand whether investors should expect a bull run.

Will Litecoin price increase in the near future?

As of this writing, LTC is trading at $75.34, up 3% on the day, taking its market capitalization to over $5.5 billion, making it the 21st largest cryptocurrency. However, if we look at the latest data, we can see that LTC is trending even higher.

According to the tweet below, January looks like a good time for Litecoin to start pivoting to its network value model. In the past, LTC’s price was at a point where it was starting to look like a bull run.

January seems like a good time for Litecoin to start pivoting to its network value model. Litecoin price is now at the apex of this triangle. The last two times this has happened, Litecoin has entered a bull phase.$LTC #litecoin pic.twitter.com/0UYHxd2klv

— MasterⓂ️🕸 (@MASTERBTCLTC) December 31, 2023

What to expect from LTC

To better understand Litecoin’s viability, experts examined on-chain data. Analysis shows that bearish sentiment surrounding Litecoin has increased recently, as evidenced by the decline in its weighted sentiment indicator.

Its social volume has also declined, reflecting the coin’s declining popularity. However, its funding rates remain green, meaning derivatives investors will continue to buy LTC.

Source: Santiment

Although social sentiment remains subdued, Litecoin’s MVRV ratio has declined, which can be interpreted as a bearish signal. However, the number of LTC transactions remains high.

The same goes for coin velocity, which means LTC is used more frequently in transactions within a given time frame.

Source: Santiment

LTC’s daily chart shows that its MACD reflects a bearish crossover at the time of writing. Notably, its relative strength index (RSI) is close to the neutral level of 50.

Most importantly, its Bollinger Bands show that LTC price has entered a less volatile zone, reducing the likelihood of an unprecedented price increase in the near future.

Source: TradingView

However, even if Litecoin begins a bull run, it will still need to overcome obstacles to sustain gains. Hyblock Capital data shows that Litecoin has experienced massive liquidation near the $77.80 mark.

Therefore, even if LTC starts a bull run, it still has to break through this level for investors to take profits in the coming days.