Litecoin’s price in the cryptocurrency market has been under bearish control in recent times due to market conditions, with a 5.5% drop in the last seven days. However, there are signs of a potential bullish performance if a pattern on Litecoin’s chart is confirmed. A popular crypto-analyst has identified a bullish pennant pattern, suggesting that a breakout could lead to a price increase of over 20% in the coming days.
To assess the likelihood of a breakout, several metrics were considered. Litecoin’s network-to-value (NVT) ratio, which indicates undervaluation, remained low, indicating a potential price uptick. Additionally, a decline in open interest, along with the price drop, is seen as a bullish signal. However, Litecoin’s MVRV ratio was down sharply, suggesting that a bull rally might not be initiated.
Technical analysis of Litecoin’s daily chart revealed bearish signals, with the MACD indicator showing a bearish crossover and the Chaikin Money Flow (CMF) indicating a sustained price decline.
Given the recent bearish market indicators, it remains to be seen if the bullish metrics will translate into a price increase and enable Litecoin to climb in the coming days.
Source: AMBCrypto
