Litecoin [LTC] has validated an optimistic breakout following a successful breach above the critical barrier of $113, indicating a potential surge in the upward direction.
Currently, LTC is trading at $112.76, showing a 12.86% rise over the previous week, underscoring robust trading activity.
From a technical standpoint, LTC has shattered a prolonged ascending triangle pattern, typically a signal of continued upward momentum.
The recent monthly closing above $113 represents a noteworthy shift in the market dynamics, reinforcing the predominance of buyers.
This breakout sets a strong base for future price escalations in the near to mid-term.
The former breakout area around $113 now functions as a vital support level. Analysts suggest that as long as LTC remains above this threshold, the bullish framework will remain intact.
Moreover, the enduring upward trendline near $90 acts as a dynamic support level, making it crucial to monitor during potential pullbacks.
Objectives for Litecoin positioned at $199, $243, and $282
Experts have pinpointed three significant price objectives for LTC. The initial target at $199.64 signifies a historical area of resistance. The second milestone at $243.13 represents a key psychological and technical threshold.
If LTC maintains its upward trajectory, the third target of $282.02 could come into sight, potentially leading to a return to multi-year peaks.
Market specialists warn that resistance near $120 has limited recent price advancements. A confirmed breakthrough above this level is deemed essential to unlock more robust upward momentum towards these objectives.
Technical signals hint that breaching this resistance may serve as a trigger for the subsequent phase of the rally.
Positive Trends Begin to Subside
The MACD indicator displayed a feeble bullish crossover, with the MACD line at 0.94 currently, slightly surpassing the signal line at 0.31.
Nevertheless, diminishing histogram bars suggest mild bullish momentum, indicating a possibility of sideways price movements in the short run. Observers in the market noted that higher trading volume might be necessary to sustain the uptrend.
The RSI (14) settled at 55.01, reflecting neutral momentum leaning marginally towards the bullish side.
Analysts suggested that surpassing the 60 mark on the RSI could signify more robust buying interest, whereas dropping below 50 might indicate a correction, potentially testing the support near $100.
Activity on Addresses Indicates Varied Sentiment
Blockchain data from IntoTheBlock unveiled a total of 705.44K LTC addresses by December 23, 2024.
The creation of new addresses during the week stood at 168.13K, reflecting a 6.16% decrease compared to the prior week.
On the other hand, active addresses surged by 3.53%, indicating sustained involvement from existing users despite reduced interest from fresh participants.
The count of zero-balance addresses escalated by 6.14%, implying profit-taking or possibly the transfer of funds from idle wallets.
While the overall engagement remains stable, the decline in the formation of new addresses suggests a cautious stance among potential new investors.
The breakout and continued upward momentum of LTC above critical thresholds instill confidence in further advancements.