Litecoin (LTC) Price Analysis: Will LTC Surge Above $100? Analysts Weigh In
Litecoin (LTC) experiences a surge in network activity, processing over a million transactions in a historic milestone, surpassing the Bitcoin network.
LTC’s weekly technical analysis reveals a gradual price increase, with a breakout from a trend line in October.
Bitcoin competitor Litecoin (LTC) has been making some strong moves catching the attention of crypto investors and traders. At press time, LTC is trading 4.14% down at a price of $70 with a market cap of $5.2 billion.
The LTC weekly technical analysis indicates a decline since June (marked by the red circle). Despite breaking free from a long-term descending resistance trend line and the $105 horizontal resistance area, the subsequent drop suggested that the initial upward movement was a deviation.
Following the drop, which confirmed the $60 area as long-term support with a low of $56 in August, LTC’s price has been gradually rising. The pace of increase accelerated in October, and last week, Litecoin broke out from the trend line. Currently, it is in the process of confirming the trend line as a support level once again.
The Relative Strength Index (RSI) is a crucial momentum indicator, helping traders determine if a market is overbought or oversold and informing decisions to buy or sell. An RSI reading above 50, with an upward trend, favors bulls, while a reading below 50 indicates the opposite.
Although the weekly RSI for LTC is on the rise, it remains below 50, signaling an undetermined trend in Litecoin’s price. Cryptocurrency traders on X express predominantly optimistic sentiments about the future.
According to SantoXBT, the price is anticipated to reach $150-$200 by the year-end. Shan Belew shares a bullish outlook on the future trend of Litecoin, citing the belief that the network is currently undervalued. Belew said that the LTC price has huge potential considering the network value.
Litecoin Outpaces Bitcoin in Network Activity
Over the past two days, Litecoin (LTC) has emerged as one of the most active blockchains in the industry, achieving a historic milestone by processing over a million transactions on November 14. This surpasses the previous all-time high of 660,153 recorded just a day earlier. Notably, LTC’s transaction activity during this period exceeded that of the original proof-of-work network, Bitcoin (BTC).
Courtesy: Glassnode
Despite the surge in transaction count, the total value of coins transferred on-chain remained relatively low, indicating that the majority of the activity comprised low-value transactions. While the increased network traffic led to a rise in total fees paid to miners, the average fee per transaction for users actually decreased.
This suggests that, despite the substantial increase in transactions, the Litecoin network did not experience congestion. In previous instances of network congestion, users tended to bid up fees to expedite their transactions.
Courtesy: Glassnode
The derivatives market presented a mixed scenario for Litecoin. The Open Interest (OI) in Litecoin Futures on Binance remained relatively stable, suggesting a decreased inclination among traders to speculate on the coin’s future movements. Conversely, the Funding Rate on the exchange was positive, signaling the prevalence of long-position traders in the market.
Filed under: Bitcoin - @ November 17, 2023 11:22 am