LCX digital asset [LCX] has made a significant impact on the cryptocurrency market by witnessing an impressive 90% increase in just a week, catching the attention of traders globally.
Currently, LCX is trading at $0.20528, showing a remarkable surge of 120% in trading volume over the last 24 hours. The question now arises: what is driving this outstanding performance, and can this positive momentum be sustained?
Breaking the Downward Channel with Key Resistance Levels in View
LCX recently broke out of a long-lasting descending trend that had restricted its value since the beginning of 2024. This breakout signifies a clear shift in momentum, with the price experiencing a substantial 19.54% uptick during the day.
As a result, attention is now on the crucial resistance level at $0.31732, indicating a possible 53% increase.
If LCX manages to uphold this upward trend, it could indicate the start of a prolonged bullish run. However, failure to maintain levels above the previous support – now turned resistance – at $0.173 could invite selling pressure.
MACD and RSI Indicators Present a Bullish yet Cautious Outlook
The MACD indicator demonstrates a strong positive trend. The MACD line has crossed above zero into bullish territory, and the expanding gap between the MACD and signal lines confirms the dominance of buyers.
Furthermore, the RSI has peaked at 80.96, which denotes overbought conditions. While this signifies intense buying interest, it also signals a possible short-term correction if traders decide to capitalize on their gains.
Thus, even though the momentum favors buyers, it is essential to proceed with caution.
On-Chain Data Shows Varied Statistics
On-chain data offers a nuanced perspective. While 11.15% of holders are experiencing profits, suggesting a positive outlook, other metrics advocate caution.
For instance, net network growth has only increased by 0.58%, and significant transactions have declined by 2.74%, indicating a diminishing interest from larger investors. Consequently, while retail involvement seems healthy, institutional engagement might be subdued.
Surge in Daily Active Addresses Corresponds to Price Hike
The number of daily active addresses for LCX has recently soared to 507, a notable surge that aligns with the recent price rally of the token. This uptick in user activity enhances the credibility of the rally, as increased network participation frequently correlates with price spikes.
Can LCX Sustain Its Positive Momentum?
LCX’s ongoing rally is powered by technical breakouts and escalating user engagement. However, the overbought RSI levels and mixed on-chain indicators raise concerns about sustainability. Breaking past the $0.31732 resistance level could unlock additional gains.
Nevertheless, a failure to maintain its current standing could trigger a retracement. Currently, LCX seems poised to prolong its bullish course, but traders should monitor crucial resistance levels and market sentiments closely.