Litecoin (LTC) recently broke through a significant trendline, signaling a potential upward trajectory as bullish momentum strengthens.
Currently trading at $65.33, analysts, including Jonathan Carter on the X platform, are eyeing price targets at $72, $82, $90, and even $108 following the breakout.
The breakout above the descending channel marks a positive development for Litecoin’s price action. However, the sustainability of this momentum will heavily rely on technical and on-chain metrics in the days ahead.
Has Litecoin’s Network Activity Aligned with Price Action?
Litecoin’s on-chain activity has shown promising growth, with active addresses rising from 285.924k to 289.064k within 24 hours. This uptick in activity signals increasing interest in Litecoin, potentially supporting the ongoing bullish price movement.
While the overall net network growth remains neutral at 0.34%, concentration levels, indicating the behavior of large holders, show a slightly bearish sentiment at -0.27%.
Despite the rise in transaction volume and active addresses, the bearish concentration suggests that some significant investors remain cautious about the current market conditions.
Are Technical Indicators Signaling Further Upside?
Litecoin’s technical indicators present a mixed but optimistic outlook. The Bollinger Bands reflect increased price volatility, with the current price nearing the upper band at $66.24.
This uptrend in volatility points towards potential continued upward movement. The Relative Strength Index (RSI) sits at 53.37, indicating a mild bullish sentiment. A move towards overbought levels in the RSI could confirm sustained positive momentum.
Maintaining a price above the recent breakout level will further reinforce the notion that the rally is more than just a temporary surge.
Crucial Levels to Monitor for Litecoin’s Next Move
Following Litecoin’s successful breakout, several key resistance levels come into focus. If the current momentum persists, $72 will serve as the primary resistance level to watch.
Beyond $72, Litecoin could potentially target $82, $90, and $108, based on past patterns and technical analysis projections.
While recent price movements and network activity paint a bullish picture for Litecoin, traders and investors should exercise caution. Regular monitoring of both technical and on-chain metrics will be essential in validating the sustainability of this upward momentum.