Litecoin Price Analysis: LTC ready to shoot above $60 as network usage skyrocketing


  • LTC/USD has settled above a significant technical barrier.
  • On-chain metrics imply that the price is positioned for further growth.

Litecoin (LTC) is the 8th largest digital asset with a current market capitalization of $3.8 billion and an average daily trading volume of $3.7 billion. The coin has gained over 23% in the last seven days, becoming the best-performing cryptocurrency out of top-10 on a week-on-week basis,

The coin topped at $59.9 on October 25 before the upside momentum started fading away. At the time of writing, LTC/USD is changing hands at $56.9, mostly unchanged on a day-to-day basis; it is moving within the short-term bearish bias amid high volatility

LTC/USD: Bullish trend gaining traction

Despite the retreat from the recent high, LTC is in a good position to continue the recovery as long as it stays above $56.8. This barrier that served as a local resistance during the weekend now turned into strong support that has the potential to limit the downside correction. On the intraday charts, it is also reinforced by the lower line of the Bollinger band and the 1-hour EMA100.

LTC/USD 1-hour


If this support area is broken, the sell-off may gain traction with the next focus on an approach to $51. This level served as a significant resistance for the coin in September and for most of October until it was broken on October 21. The next crucial bearish target comes at $45.5, followed by $41.5.

Meanwhile, if $56.8 is verified as support, LTC/USD may continue growing with the next focus on the psychological barrier of $60 strengthened by the recent high and the upper line of the 1-hour Bollinger Band. Once it is out of the way, the upside is likely to gain traction with the next focus on $64. This resistance stopped the coin's recovery in August. 

LTC/USD 12-hour chart


LTC on-chain metrics

The coin-chain supports the bullish scenario. According to Glassnode, the number of active LTC addresses has grown by over 15% in the past 24 hours, from 6,596.062 to 7,594.896, meaning that the active participation in Litecoin's network in on the rise. 

The greater usage usually implies that demand for the cryptocurrency is growing, which is a bullish signal for the price. 

Meanwhile, the In and Out of the Money Positioning (IOMP) data confirm a strong resistance on approach to $60. A cluster of 74,000 addresses holding over 2.6 million coins has their breakeven point there, meaning that the bulls may have a hard time pushing through. However, once it is broken, the way to the north will be mostly clear.

On the downside, the supply area of $56-$54 confirms the strength of the above-mentioned technical support of $56.8. Over 81,000 addresses folding 2.7 million coins are going to defend their breakeven there. The next supply wall is seen around $51, which coincides with the technical barrier mentioned above.

Litecoin's IOMP data

Source: Intotheblock

Key levels to watch

Technical and on-chain data implies that LTC is well-positioned for further growth; however, we will need to see the recovery above $60 for the upside to gain traction. A sustainable move above this will signal that the short-term bullish trend is back on track.

The downside correction will be limited by the former resistance of $56.8, while a sustainable move below this area will invalidate the immediate bullish scenario and bring $51 into focus.

Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.

Cryptos feed

Latest Crypto News


Latest Crypto News & Analysis

Editors’ Picks

Bitcoin at $5,000 charts begin to pop up on Twitter, how likely is such a massive correction?

It’s not uncommon to see considerable corrections in the market after massive rallies like the one Bitcoin is experiencing. Around $80 billion were wiped out from the market in less than 24 hours, and some analysts believe the price could go even lower.

More Bitcoin News

Ethereum transaction fees skyrocket as price collapses

At the time of writing, Ethereum (ETH) is trading at $520. The second-largest digital asset, with the current market capitalization of $59 billion and an average daily trading volume of $30 billion, has lost over 12% on Thursday. However, it is still in a green zone on a week-to-week basis.   

More Ethereum News

Cardano Price Prediction: ADA must overcome a massive supply barrier to extend a recovery

Cardano (ADA) has climbed to the 8th position in the global cryptocurrency market rating. The coin hit $0.194, the highest level since July 2020, on November 24, before the correction started. 

More Cardano News

SushiSwap Price Analysis: SUSHI rebounds strongly as whales buy the dip

The entire cryptocurrency market suffered a massive crash on Thursday. Sushiswap price dropped by more than 20% within hours but managed to recover almost instantly, hitting $1.285.

More SushiSwap News

BEST CRYPTO BROKERS/EXCHANGES




Bitcoin Weekly Forecast: BTC makes new yearly highs while its network activity looks worrisome

Bitcoin has lived through the best week since February 2018. The pioneer digital currency price gained over $2,000 in less than seven days. The bullish momentum allowed it to reach a new multi-year high of nearly $18,800, marking November 2020 one of the strongest bullish months ever. 

Read the weekly forecast

BTC

ETH

XRP