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Litecoin Price Forecast: LTC Network Activity and RSI Signal Potential Price Rebound

Highlights:

  • Litecoin’s unique addresses averaged 704,000, more than doubling from May’s 345,000 average.
  • Litecoin’s RSI in the opportunity zone indicates a potential buying opportunity.
  • Litecoin registered 1.44 million daily addresses on June 9, 2024, overtaking Bitcoin and Ethereum in active user engagement.

The Litecoin market has been engulfed by selling pressure as bearish activity remains firm. LTC has been trading in a descending channel on the weekly and monthly charts, declining by 6.86% and 4.73%, respectively. 

As of press time, Litecoin is trading at $77, recording a decline of more than 3% in the past 24 hours following the broad market downturn. The market capitalization has decreased to $5.75 billion amid the rise in trading volume at $561 million, indicating the heightened activity in LTC’s market. 

Litecoin Network Activity Sees Significant Surge

Litecoin’s network activity has recently surged, showing a significant increase in unique addresses interacting on the network. This uptick and favorable technical indicators suggest a potential price rebound for Litecoin.

According to Santiment, a market intelligence platform, Litecoin has averaged approximately 704,000 unique addresses interacting on the network over the past week. This figure represents a substantial rise compared to the 345,000 average addresses in May. The doubling of active addresses highlights increased user interaction and growing interest in LTC.

Additionally, Litecoin’s Relative Strength Index (RSI) has moved well into an opportunity zone. The RSI is a momentum indicator used to identify overbought or oversold conditions. A low RSI can signal that an asset is undervalued, indicating a potential buying opportunity. Therefore, this movement suggests that LTC might be poised for a price bounce.

Notable developments include the recent surge in Litecoin’s on-chain activity and its RSI entering an opportunity zone. These factors and current price movements indicate that Litecoin could be gearing up for a positive price rebound.

Don’t Miss: Litecoin Price Prediction 2024 – 2040

Litecoin Sees Surge in Active Users

Litecoin has recently outpaced both Bitcoin and Ethereum in terms of daily active addresses. As of June 9, 2024, the platform reported a significant count of 1.44 million active addresses. This figure highlights a growing preference among crypto users, positioning Litecoin as currently the most utilized blockchain network.

The data reveals an encouraging trend for Litecoin, with new addresses reaching approximately 646.79 thousand and active addresses totaling 794.21 thousand on the same day. This surge underscores the crypto community’s increasing trust and utilization of LTC and marks a key moment for the network.

Currently, TRON has 2.253 million active daily addresses, showing significant user interaction within its platform. Bitcoin and Ethereum are ranked 3rd and 4th with 685.238k and 506.487k addresses, respectively. 

Key Price Levels to Watch

According to data from IntoTheBlock, a market intelligence platform, many Litecoin holders are currently positioning themselves to sell. The data reveals that approximately 432,070 addresses purchased a collective 6.67 million LTC at prices between $81 and $83. This purchase range is crucial as Litecoin’s current market value hovers below this threshold.

Market Expert trader_kamikaze observed that Litecoin experienced a sharp 11% drop, culminating in a closure that saw it dip below the pivotal $83 support level. This decrease has positioned LTC at a precarious juncture, poised just beneath the average buy-in price of a considerable segment of its holders. Market dynamics suggest a potential for a brief price spike as holders may seek to break even, particularly if values ascend back to the $82-$83 range.

This recent downturn in Litecoin’s price and the looming sell pressure from holders at the $82-$83 level provide a clear insight into the possible short-term movements of this cryptocurrency. With a large volume of LTC bought at this range, any move towards these levels could trigger selling, aiming for breakeven points, thus adding to the volatility.

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