Litecoin’s price dropped below $80 over the weekend due to significant sell pressure in the crypto market. Despite this, recent data suggests two potentially bullish indicators for the altcoin, predicting a recovery. The number of addresses interacting on the Litecoin network more than doubled starting from June 4th, indicating a significant uptick in network activity and adoption. This surge in active addresses, coupled with Litecoin’s RSI entering the “opportunity zone” region, suggests that the asset may be oversold and primed for a price rebound. This could potentially signify a rally for Litecoin in the near future.
However, concerns about sell pressure still exist as an analysis showed that around 432,070 addresses acquired a total of 6.67 million LTC in the price range of $81-$83. If Litecoin manages to climb back to this range, investors may try to sell their holdings in an attempt to break even, creating potential resistance around the $81-$83 range. Despite this, Litecoin briefly emerged as the most active blockchain in the world last week, surpassing Bitcoin and Ethereum in terms of active addresses. This surge in usage was attributed to the cost and time efficiency of Litecoin.
On June 6th, IntoTheBlock data revealed that the number of active Litecoin addresses reached the highest level since January, with a total of 426k transactions during this period of increased network activity. While a majority of these transactions involved smaller amounts under $10, there was also a noticeable rise in transactions of all sizes on the network. This trend was indicated by the blockchain intelligence firm, suggesting a positive outlook for Litecoin’s network activity. Overall, these milestones for Litecoin indicate potential growth and adoption in the near future, despite the recent price drop.
The increase in active addresses, along with Litecoin’s RSI indicating oversold conditions, could potentially lead to a price rebound for the cryptocurrency. The surge in network activity and adoption, as well as the interest in purchasing Litecoin at the $81-$83 range, suggest that there is still bullish sentiment surrounding the altcoin. Despite concerns about sell pressure and potential resistance levels, Litecoin has shown promising signs of recovery in the near future. As one of the most active blockchains in the world, Litecoin’s milestones and network activity point towards a positive outlook for the altcoin.
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