Litecoin price has crawled back in the past few days as the crypto industry and stock market rebounded. LTC was trading at $61.74 on Tuesday, which was about 52% above the lowest level this year. Its market cap stands at more than $4.4 billion.
Litecoin and other cryptocurrency prices bounced back recently as signs of greed in the market started to emerge. For example, the US dollar index has slipped from the year-to-date high of $109.3 to about $103. The falling USD is a sign that investors have embraced a risk-on sentiment.
Further, the closely watched volatility index (VIX) has dropped to the lowest level in months. This is a sign that volatility in the market has eased slightly.
Meanwhile, the fear and greed index that is tracked by CNN Money has risen from the extreme fear level to the current point at 52. This is a sign that investors are getting a bit greedy.
Historically, stocks and cryptocurrency prices tend to do well in a period of greed in the market. This also explains why the Nasdaq 100 index is close to exiting its bear market.
At the same time, LTC has jumped as investors predict that the sell-off that took place earlier this month has faded. For one, the contagion that most people were expecting following the crash of Celsius, Voyager Digital, and Three Arrows Capital has not happened.
Further, on-chain data shows that activity in litecoin’s network has continued rising in the past few days. For example, the number of LTC addresses has jumped in the past few weeks although they remain substantially below their highest point in 2021.
The daily chart shows that the LTC price has made a strong recovery in the past few weeks. This recovery started when the coin dropped to a low of $40.59 this year. It has now managed to move slightly above the 25-day and 50-day moving averages while the MACD has moved above the neutral point. The two moving averages have even made a bullish crossover.
Therefore, the coin will likely continue rising as bulls target the important resistance point at $92.11, which was the lowest level since April this year. A move below the support at $50 will invalidate the bullish view.