With its latest break above the $74 mark, Litecoin (LTC) is showing encouraging signs of a breakout into the bull market.
Increased transaction activity from miners and large cryptocurrency investors is fueling expectations of an upward trend and suggesting a massive price spike is imminent.
At the time of writing, the price range for LTC is $61.50 to $74.50, up 3.5% in the last 24 hoursThis is evident from figures from crypto market price aggregator CoinGecko. Data shows that the crypto has managed to hold its ground so far, sustaining a 37% increase in the past four months.
In contrast, the 100-day moving average is currently at $67.40, while the 10-day moving average is at $73.25. These indicators suggest that Litecoin is gaining popularity, with resistance levels at $80.11 and $93.05.
Litecoin hasn’t changed much in response to recent events in the crypto sector, even though it will start generating immediate profits. Companies such as Blackrock, Invesco, Franklin Templeton, Ark Invest and Fidelity recently applied for a spot Bitcoin ETF.
Blackrock recently filed a separate document for an Ethereum ETF. This signals the prevailing confidence of the world’s largest asset manager in the possible approval of its Bitcoin ETF.
Litecoin has become one of the most active blockchains in the industry, with a solid performance of over 1 million transactions as of November 14, marking the first time the proof-of-work (PoW) network has reached this milestone.
This surpasses the previous all-time high of 660,153 transactions recorded just a day earlier. Remarkably, Litecoin’s transaction activity over this two-day period has surpassed that of Bitcoin, highlighting a significant increase in LTC’s blockchain involvement.
LTC market cap currently at $5.4 billion on the 24-hour chart: TradingView.com
According to the latest data, Litecoin has a strong daily trading volume that surpassed $612 million the previous day. Like Bitcoin, Litecoin has proven to be resistant to manipulation.
Moreover, in recent months, Litecoin continues to maintain its position as a cryptocurrency with significant processing power to handle heavy transactions with a relatively consistent hash rate.
In the meantime, there are two very encouraging signs: the miners accumulation of LTCwhich has reached reserves of more than 2.5 million, and the spike in whale transactions, which peaked eight weeks ago.
But before the bulls can confidently shoot to $80 and above, they need to be able to break the initial barrier of $78. A correction could occur if the price falls below $65; however, early support could come from the 406,590 holders who purchased 4.8 million LTC for approximately $67.
Source: Santiment
Meanwhile, the performance of the derivatives market showed a varied scenario. The Open Interest (OI) for Litecoin Futures on Binance showed a sideways movement, indicating a reduced tendency among traders to speculate on the future price movements of the cryptocurrency.
Conversely, the financing rate on the exchange showed a positive trend, which indicated the presence of traders with long positions in the market. This difference in market indicators reflects a nuanced sentiment among participants, with some showing caution and a wait-and-see attitude, while others express confidence in Litecoin’s upward trajectory.
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Featured image from Creative Commons
