Contributor
Editor: Ann Maria Shiv
Posted: September 15, 2024 | Last updated: September 21, 2024
Litecoin has broken above an important trend line, suggesting that bullish momentum could continue ahead of the target price. On-chain indicators show mixed sentiment, with large holders remaining cautious while smaller participants are becoming more active.
Litecoin (LTC) was gaining strong bullish momentum after breaking above a key trend line and was showing signs of a possible breakout.
According to a post by crypto analyst Jonathan Carter on the X Platform (formerly Twitter), it was trading at $65.33 at the time of writing, and this move could signal the beginning of an even bigger upward trajectory. Potential targets are $72, $82, $90 and $108.
Source:X
The recent breakout above the descending channel is an encouraging development for Litecoin’s price trend. However, technical and on-chain indicators will be important to determine whether this momentum can be maintained in the coming days.
Does Litecoin network activity support price movements?
Litecoin on-chain activity has shown promising growth, with active addresses increasing from 285.924k to 289.064k in the 24 hours at the time of writing. This increased activity indicates growing interest in Litecoin and could support a bullish price trend.
Source: Bitinfocharts
However, on-chain signals present a more nuanced picture. The network’s net growth rate remains at a neutral 0.34%, while the concentration level, which reflects the behavior of large holders, is slightly bearish at -0.27%.
Source: Into the Block
This concentration of weakness suggests that some large investors may remain cautious, even as the number of trades and active addresses continues to increase.
Do technical indicators point to further upside?
Litecoin technical indicators show a mixed but promising outlook. Bollinger bands indicate increasing price volatility, and the current price is near the upper band of $66.24.
This suggests that momentum is building for continued upside. The relative strength index (RSI) is 53.37, indicating mild bullish sentiment. If the RSI approaches overbought levels, it could confirm continued momentum.
Source: TradingView
Furthermore, if Litecoin price is able to sustain above its recent breakout levels, it would strengthen the idea that this rally is more than just a temporary rally.
Key levels to watch for Litecoin’s next move
Litecoin’s successful breakout of the descending channel has brought several important levels into focus. If the current momentum holds, $72 will be the first major resistance level.
Read Litecoin (LTC) price prediction for 2024-2025
Based on historical patterns and technical predictions, Litecoin could continue to rise towards $82, $90, and $108 thereafter.
Litecoin’s recent price movements and network activity indicate the potential for further upside, but traders and investors should remain cautious. It is essential to monitor both technical and on-chain indicators to see if this bullish momentum is sustainable.
Previous: WIF market soars: Analyst predicts $10 peak after 8% jump Next: Robert Kiyosaki says Bitcoin will ‘explode’ if Fed reverses course
Source link
