Litecoin Adds Nearly 1 Million Addresses In Under 7 Months, But Will LTC Price Rally?

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As a seasoned researcher with extensive experience in analyzing cryptocurrency markets, I’ve witnessed numerous bull and bear runs throughout my career. The recent pullback in the crypto market has been no exception, as Bitcoin’s rally from $68,000 faltered, causing ripple effects across major cryptocurrencies like Litecoin.

Beginning this week, the crypto market experienced an increase in supply forces, causing Bitcoin‘s rally to reverse from its peak at $68,485. This setback disrupted the progress of recovery for major cryptocurrencies like Litecoin, currently valued at $73.44. The value of LTC displayed a consolidation pattern since last week, regaining strength following the early July surge. Could the recent growth in network addresses encourage buyers and lead to a $100 rebound for Litecoin?

LTC Price Eyes 48% Rally Before Major Breakout

Litecoin Adds Nearly 1 Million Addresses In Under 7 Months, But Will LTC Price Rally?

As I analyzed the market trends in July, I noticed an intriguing reversal in Litecoin’s price action. The cryptocurrency had been holding steady with the combined support of $57.7 and an ascending trendline since November 2018 (as indicated by the blue line). This dynamic support played a crucial role in preventing significant corrections for crypto holders, making it a vital accumulation point.

The asset’s value has surged by almost 30%, reaching $73.2, following a bullish reversal on July 15th. At this point, its market capitalization stood at an impressive $5.47 billion. This significant price increase was signaled by the LTC forecast, which indicated a bullish breakthrough from the resistance of the previous correction trend and suggested a shift in investor sentiment.

According to Jay Milla, the Marketing Director at the Litecoin Foundation, there has been a notable increase in the total count of Litecoin network wallets holding a balance.

— Jay (@MillaLiraj) July 23, 2024

With over 8 million unique addresses in use, the network has seen a significant growth in the last year, welcoming over a million new users. This surge in participation reflects the escalating enthusiasm and involvement in Litecoin, potentially fueling increased demand for LTC.

If the LTC price demonstrates stability around the $70 mark, it’s plausible that the price surge following the breakout could reach as high as $108, representing a potential gain of approximately 48%. The triangle pattern on the chart implies a brief period of contraction for the prevailing trend, allowing it to regain its strength.

Litecoin Adds Nearly 1 Million Addresses In Under 7 Months, But Will LTC Price Rally?

Based on my extensive experience in analyzing financial markets and observing trends in cryptocurrencies like Litecoin, I believe that the sideways price action we’ve seen recently, hovering above the established multi-year support trendline, could be indicative of an accumulation phase. This is a common pattern in which investors buy up assets at lower prices in anticipation of future price increases. Having closely monitored market behavior and studied historical data, I am confident that this trend warrants close attention from traders and investors alike.

If the price breaks above the existing resistance line (trendline), it could be an indication of an impending trend change, providing an early chance for investors who have been waiting on the sidelines to jump in and profit from potential further price increases.

If the triangle resistance holds strong, the sellers might try to reverse their position and extend the sideways trend further.

Technical Indicator:

  • EMAs: The recently reclaimed 20D Exponential Moving Average could offer buyers suitable pullback support amid the current recovery.
  • ADX: A downsloping trendline in the Average Directional Index slope hints the prevailing bearish momentum is losing strength.

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2024-07-24 17:36