Litecoin (LTC), a well-established cryptocurrency, has sparked excitement among investors with a recent surge in network activity. This uptick, viewed as a bullish signal by market analysts, positions Litecoin as the current leader in blockchain activity, surpassing even giants like Bitcoin and Ethereum.
Data from Santiment, a renowned crypto market intelligence platform, reveals a dramatic increase in unique addresses participating in Litecoin transactions. Since June 4th, these active addresses have more than doubled, jumping from an average of 345,000 in May to a staggering 704,000 in the past week. This significant rise indicates heightened interest and activity on the network, generally interpreted as a positive development.
Adding to the optimistic outlook is Litecoin’s Relative Strength Index (RSI) entering a favorable “opportunity zone.” The RSI is a technical indicator that measures the momentum of price movements. Lower RSI values suggest an asset may be undervalued. Since September, Litecoin’s RSI has consistently resided in this zone, hinting at a potential price rebound.
However, a recent price drop from a high of $89.6 to around $79 has tempered some enthusiasm. This decline suggests increased selling pressure, creating a temporary hurdle for bullish momentum.
The technical chart analysis presents a mixed picture. The mid-term trend remains positive, supported by an ascending trendline. This suggests buyers are accumulating LTC at lower price points, a key sign of a potentially sustainable uptrend. Additionally, a recent “long-tailed rejection candle” at the trendline indicates continued buying pressure.
Crypto analyst Kamikaze highlights that roughly 432,070 addresses have accumulated a significant amount of LTC (approximately 6.67 million) at an average price of $82. If the price falls back to this range, some investors might sell to break even, creating temporary selling pressure.
Also Read: Litecoin (LTC) Back From the Dead? 5.5% Surge & Miner Buyout Signal a Potential Break Above $92
Therefore, a period of consolidation around the $82 mark seems likely in the near future. If the upward trendline remains intact, a rebound towards $88.7 is a possibility. A break above this resistance level would signal a significant shift in market sentiment towards bullish territory.
With sustained buying activity, several analysts anticipate a forthcoming LTC price surge towards $100 in the short term, with even more ambitious targets of $140 and $160 in the long run. However, it’s crucial to remember the inherent volatility of the cryptocurrency market, and these forecasts should be viewed as speculative in nature.
Disclaimer: The information in this article is for general purposes only and does not constitute financial advice. The author’s views are personal and may not reflect the views of Chain Affairs. Before making any investment decisions, you should always conduct your own research. Chain Affairs is not responsible for any financial losses.
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