The recent activity on the Litecoin network has suggested a potential rally for LTC, with targets indicating that the price could reach $85. Analysis has shown that Litecoin has formed a bullish divergence, signaling the end of a downtrend. This divergence occurs when the price falls, but network activity increases, as was the case with Litecoin. Data from Santiment revealed that the number of unique addresses interacting with LTC hit 704,000 in the last seven days, compared to 345,000 in May. This increase in network activity could indicate that LTC sellers are exhausted, potentially leading to a price increase.
In addition to the rise in network activity, other metrics support the idea of a potential bounce for Litecoin. The Relative Strength Index (RSI) on Litecoin’s 4-hour chart was close to the oversold region, suggesting that the coin may be close to being oversold. This could point towards a potential price increase for LTC, with a target of $85 being plausible. Looking at the Reserve Risk, which measures market confidence and risk-to-reward ratio, Litecoin’s low reading suggests that it could be a good time to buy LTC. The high areas of liquidity and negative Cumulative Liquidation Levels Delta (CLLD) also indicate a potential price increase for Litecoin in the short term.
With these indicators in mind, Litecoin may be gearing up for another move, potentially trending higher in the coming weeks. The analysis suggests that the price could move towards levels of $80.20 up to $87.65, where liquidation events might occur. Overall, the data points towards a positive outlook for Litecoin in the short term, with the potential for the price to exceed $85 within the next few weeks. Investors may want to keep an eye on these indicators to gauge the future performance of LTC in the market.
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