Litecoin’s on-chain activity has demonstrated its continued relevance and usefulness in the cryptocurrency space. At the time of publication, 72% of Litecoin holders were making money, highlighting the high holder profit ratio, which may indicate confidence in the price of Litecoin.
The network boasts 370,000 active addresses in the last 30 days, demonstrating significant user engagement compared to other layer 1 networks such as Dogecoin, Cardano and Avalanche.
These 200,000 daily transactions reflect the high activity of the network. This suggests that LTC is still the preferred choice for transactions compared to newer blockchain technologies.
Notably, Litecoin had $10.27 billion in transaction volume over the past month, which is roughly equivalent to its market capitalization. This highlighted its usefulness for real-world transactions.
This has been a deciding factor that has often attracted both individuals and business users who require reliable and fast transactions.
The network supports 7.94 million balance addresses, indicating a wide and dedicated user base. Among them, 78% were long-term holders who held their LTC for more than a year, highlighting the community’s strong belief in the long-term value of Litecoin.
Further, Litecoin could strengthen its position as a viable payment method worldwide, potentially increasing its adoption and value.
Litecoin price assessment in relation to Bitcoin
Once again, Litecoin’s price marked a major event with its first yellow candle closing above the 50-week moving average (WMA), a bullish signal often monitored to confirm a reversal or trend strength.
Litecoin has been trending lower against Bitcoin, as evidenced by extended periods below the 50 WMA. However, the recent break above this average indicates a potential market shift.
This move above the 50 WMA could signal increased investor confidence in Litecoin, perhaps driven by recent events or broader market conditions favoring Litecoin.
The appearance of the yellow candle meant that LTC was entering a phase where it could be considered relatively undervalued, attracting more attention and investment compared to Bitcoin.
If Litecoin can maintain its position above the 50 WMA, it could lead to further gains. This move served as a tipping point for Litecoin’s price, with implications for its comparative valuation.
This break in market structure can often lead to the opening of new price ranges, perhaps challenging previous highs or establishing new support levels.
Fibonacci and MACD retracement levels for LTC
Looking at the LTC price action on the weekly chart, we can see a clear uptrend that recently peaked around $109.83. It involved 0.75 Fibonacci retracement levels drawn from a swing low of around $20 in early 2020 to a high of around $400 in mid-2021.
This suggests resistance turned support at 0.75 ($122.221) and a potential target at 0.618 ($173.646) if the bullish momentum continues.
The MACD indicator under the price chart showed convergence from the signal line, which means the upward momentum is strengthening.
This was further confirmed by the latest volume bars indicating strengthening bullish momentum.
A potential path forward for Litecoin price, if it maintains its current momentum, could see it approach the $180 mark, which is the 0.618 Fibonacci level. This is a common recovery target for assets during a bullish recovery.
Traders may view this as an opportunity to ‘buy the dip’ as price above the significant 0.75 level could serve as a new support area for future rallies.
However, it is important to remain cautious as changes in market dynamics or broader economic factors can quickly change price movements.
