Over the past three days, Litecoin [LTC] has experienced a continued upward trend, signaling a potential recovery. After falling to a low of $96, Litecoin surged 9.38%. At the time of writing, Litecoin is trading at $105, up 6.69% over the past 24 hours.

Prior to the rise, LTC was in a downward trend, with the weekly chart falling 3.4% and the monthly chart falling 13.97%.

The recent rally raised questions about the future trend of the altcoin. Is LTC about to continue recovering, or is this just a market adjustment driven by New Year's speculation?

Is LTC ready for continued recovery?

According to AMBCrypto's analysis, Litecoin is experiencing strong upward momentum as buying pressure increases.

These market conditions are likely to push Litecoin up further on the price chart.

First, Litecoin's Stochastic Indicator (Stoch) has seen a bullish crossover over the past 24 hours. This indicates that the market momentum is turning upward, which could lead to higher prices. This crossover represents a buying opportunity for many traders.

Similarly, Litecoin's Relative Strength Index (RSI) also showed a bullish crossover, further confirming the increase in buying activity. As buying pressure increases, demand is likely to drive up prices.

Looking further, this observed buying pressure is mostly driven by whales. As a result, large transactions surged 31.3% over the past day. As whales enter the market, they seem optimistic and expect further increases.

Furthermore, increased demand for long positions is further proof of this bullish sentiment. According to Coinglass, long positions dominate the market, accounting for 53% of the total volume. As long positions dominate, this indicates that most traders expect the LTC price to rise.

Finally, Litecoin's MVRV ratio, which previously fell to an extremely undervalued region, now signals a potential upward reversal.

The MVRV ratio increased from 0.208 to 0.29. When MVRV began to rise, it was an indication that the asset was recovering from undervaluation due to increased buying interest and reduced selling pressure.

With the recent rise in price, long-term holders of Litecoin have become more confident as their profit margins have risen while the overall market has turned bullish. LTC's price chart is likely to rise further as bullish sentiment dominates the market.

If this optimism continues, LTC will reclaim the $115 resistance level. A breakout from here will push the price back to $130. Subsequently, if the bulls fail to hold onto the market, we may see the altcoin drop to $96.