As Litecoin (LTC) enters a recovery phase amid increased network activity and user engagement, investors are keeping a close eye on the critical resistance at $120.
The recent increase in daily active addresses is considered a sign of increasing investor interest, and this reveals Litecoin's potential to generate more profits.
“Momentum in Litecoin presents attractive opportunities for both traders and long-term investors,” according to industry insiders.
Discover the latest information on Litecoin’s price action, network activity, and overall market outlook, while also tracking key resistance levels and bullish signals.
Currently trading at around $106, Litecoin is sitting at a critical support point around $100. This key level is supported by the 50-day moving average, which has historically provided a safe floor for LTC.
In the event of an upward move, the $120 level stands out as a strong resistance point. Previous attempts to break this barrier in December were met with significant selling pressure and showed that market sentiment was cautious. In addition, the golden cross pattern formed by the 50-day moving average crossing above the 200-day moving average reinforces bullish expectations. If Litecoin can sustain its current momentum and break the $120 level, it could pave the way for a rally to $140.
Data from IntoTheBlock shows a significant increase in Litecoin’s daily active addresses, which parallels the price recovery. Between October and December, this increase reflects not only increased user engagement but also renewed interest in LTC.
The average daily active address count for Litecoin in 2024 is expected to reach 401,000, surpassing the 366,000 level in 2023 and indicating that the cryptocurrency is starting to gain more ground in the market. This increase could be linked to traders taking advantage of Litecoin’s bullish momentum. Correlating the increase in active addresses with price action suggests that user engagement plays a significant role in LTC’s appreciation.
The overall market outlook for Litecoin is shaping up positively, supported by price appreciation and increased network activity. However, traders should be careful considering the resistance at $120.
Breaking this level could signal the start of a more sustainable bull market, while breaking the $100 support could see increased selling pressure and damage LTC’s market position.
As we approach the end of 2024, all eyes will be on Litecoin’s performance; increased network activity offers important insights into Litecoin’s future potential.