LTC / USD poised to surge above the $ 60 level as network usage soars

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

He Litecoin (LTC/USD) It is the eighth largest cryptocurrency with a current market capitalization of $ 3.8 billion and an average daily trading volume of $ 3.7 billion. The cryptocurrency has gained more than 23% in the last seven days, becoming the best performing cryptocurrency in the top 10 in the weekly view.

LTC / USD hit $ 59.9 on October 25 before the bullish momentum started to fade. At the time of writing, Litecoin is trading at $ 56.9, virtually unchanged on the day. It moves into a short-term bearish bias amid high volatility.

LTC / USD: Bullish trend gaining ground

Despite the pullback from the recent high, the LTC is in a good position to continue the recovery as long as it remains above $ 56.8. This barrier that served as resistance over the weekend has now turned into strong support that has the potential to limit the downward correction. On intraday charts, it is also reinforced by the lower line of the Bollinger Band and the 100 hourly EMA.

LTC / USD 1 hour chart

litecoin

If this support area breaks down, the slide can gain traction with the next target near $ 51. This level served as significant resistance for the currency in September and for most of October until it broke on October 21. The next crucial bearish target is $ 45.5, followed by $ 41.5.

Meanwhile, if the $ 56.8 region is verified as support, the LTC / USD may continue to rise with the next target at the $ 60 psychological barrier, strengthened by the recent high and the upper line of the 1-hour Bollinger Band. . Once above this level, the rally is likely to gain traction with the next target at $ 64. This resistance stopped the currency’s recovery in August.

LTC / USD 12 hour chart

litecoin

LTC Chain Metrics

Chain metrics support the bullish scenario. According to Glassnode, the number of active LTC addresses has grown by more than 15% in the last 24 hours, from 6,596,062 to 7,594,896, which means that active participation in the Litecoin network is on the rise.

The increased use generally implies that the demand for the cryptocurrency is growing, which is a bullish signal for the price.

Meanwhile, Litecoin money inflow and outflow data confirms strong resistance near $ 60. A group of 74,000 addresses with more than 2.6 million coins breaks even there, which means that bulls may have a hard time moving forward. However, once it breaks, the way to the upside will be clear.

On the downside, the $ 56 – $ 54 supply area confirms the strength of the aforementioned technical support at $ 56.8. More than 81,000 addresses with 2.7 million coins will defend their breakeven point there. The next support is around $ 51, which coincides with the technical barrier mentioned above.

Data of money inflows and outflows of Litecoin

litecoin

Source: Intotheblock

Key levels to highlight

On-chain and technical data imply that LTC / USD is well positioned for further growth. However, we will have to see the recovery above $ 60 for the rally to gain traction. A sustainable move above this level will indicate that the short-term uptrend is back on track.

The downside correction will be capped by the previous resistance at $ 56.8, while a sustainable move below this region will invalidate the immediate bullish scenario and target the $ 51 level.

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Credits: Forex Street

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