The LCX cryptocurrency has risen by as much as 90% in just seven days, this astonishing performance quickly swept across the entire cryptocurrency market, attracting the attention of traders worldwide.
Currently, the trading price of LCX is $0.20528, and the trading volume has surged by 120% in the past 24 hours. What factors have driven such extraordinary performance? Can this momentum continue?
Break through the downward channel and focus on key resistance levels
Recently, LCX successfully broke free from the long-term downward channel that had been restricting its price since early 2024. This breakthrough signifies a clear change in price momentum, with bulls driving the price up by 19.54% during the session.
Currently, the market's focus has shifted to the key resistance level of $0.31732. Once surpassed, it indicates a potential upward space of 53% for LCX.
If LCX can maintain its current upward trend, it may indicate that the bull market will continue; however, if it cannot hold the key level of $0.173, which has turned from a support level, it could trigger bearish pressure.
The situation presented by the MACD and RSI indicators
From the indicators, the MACD indicator demonstrates strong upward momentum, with its line having entered the bullish zone above the zero axis, and the gap between the MACD and the signal line continues to widen, further confirming that buyers dominate the market.
The RSI indicator has soared to 80.96, indicating that the market is in an overbought state. While this reflects strong purchasing activity at the moment, it also warns that if traders start taking profits, LCX's price may experience a pullback in the short term.
Therefore, although the current bullish momentum remains strong, everyone still needs to maintain a cautious attitude.
On-chain signals present both opportunities and concerns
The situation presented by on-chain data is relatively complex. On one hand, 11.15% of holders are in profit, indicating good profitability for LCX; on the other hand, other indicators suggest a need for caution.
For example, the net network growth is only 0.58%, and large transactions have decreased by 2.74%, which indicates that large investors' interest in LCX is gradually weakening. Thus, although retail trading activity seems relatively active, institutional participation may be relatively limited.
Daily active addresses rise with price increase
The number of daily active addresses for LCX has recently surged to 507, a significant increase that aligns with the recent price rise of the token. The increase in user activity enhances the credibility of this upward trend, as higher network participation is often correlated with price increases.
Can LCX continue its momentum?
Currently, LCX's upward momentum is driven by a breakthrough on the technical level and an increase in user activity. However, the RSI being in overbought territory and mixed on-chain signals raise questions about the sustainability of its upward trend.
If LCX can break through the resistance level of $0.31732, it may further open up upward space; however, if it cannot maintain the current price level, a pullback may occur.
At present, LCX seems likely to continue developing along a bullish trajectory, but traders need to closely monitor key resistance levels and changes in market sentiment.