With its latest breakout above the $74 barrier, Litecoin (LTC) is showing encouraging signs of a bull market breakout.
Increased trading activity from miners and major investors in cryptocurrencies is fueling expectations of an upward trend and suggests a huge price surge 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 hours, show figures from crypto market price aggregator CoinGecko. So far, the crypto has managed to hold its own and maintain a 37% increase over the past four months, according to the data.
In contrast, the 100-day moving average currently sits at $67.40, while the 10-day moving average is at $73.25. These indicators suggest that Litecoin is gaining momentum, with resistance levels found at $80.11 and $93.05.
Litecoin has not changed much in response to recent events in the crypto sector, although it could gain directly. Companies like Blackrock, Invesco, Franklin Templeton, Ark Invest, and Fidelity have recently filed for a spot Bitcoin ETF.
Blackrock recently submitted a separate document for an Ethereum ETF. This indicates the prevailing confidence of the world’s largest asset management company in the potential approval of its Bitcoin ETF.
Litecoin has become one of the most active blockchains in the industry, with a strong success surpassing one million transactions on 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 a day earlier. Remarkably, Litecoin’s transaction activity during this two-day period exceeded that of Bitcoin, highlighting a significant increase in LTC’s engagement on the blockchain.
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 which exceeded $612 million the previous day. Like Bitcoin, Litecoin has proven itself resistant to manipulation.
Additionally, Litecoin continues to maintain its position as a cryptocurrency with significant processing power to handle heavy transactions with a relatively constant hash rate in recent months.
In the meantime, there are two very encouraging signs: accumulation of LTCwhich has reached reserves of more than 2.5 million, and the rise in whale transactions, which peaked eight weeks ago.
But before bulls can confidently target $80 and above, they must be able to break through the initial barrier of $78. A correction may begin if the price falls below $65; However, early support could come from the 406,590 holders who purchased 4.8 million LTC for around $67.
At the same time, the evolution of the derivatives market presented a varied scenario. Open interest (OI) for Litecoin futures on Binance showed a sideways movement, suggesting a decrease in the propensity of traders to speculate on future price movements of the cryptocurrency.
Conversely, the exchange’s funding rate showed a positive trend, signifying the predominance of long traders in the market. This divergence in market indicators reflects nuanced sentiment among participants, with some exercising caution and a wait-and-see approach, while others express confidence in Litecoin’s upward trajectory.
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