Litecoin is showing signs of a possible breakout with heavy activity in the chain

With Bitcoin on track to bounce back above $ 60,000, the broader market has been overshadowed by the top coin’s gains. The history of the Litecoin blue chip is not much different.

Litecoin rose steadily in October and now that LTC along with BTC’s strong gains are showing signs of a possible breakout, what to expect for this altcoin in the near future?

High activity in the chain

On October 13th, Litecoin made history by outperforming Ethereum’s active addresses and shocking market watchers. After all, 600,000 daily active addresses are an excellent number for a UTXO coin. What is more surprising is that LTC’s active addresses stay pretty good at these ATH levels.

Source: Santiment

This leads to the important question: “Who uses Litecoin?”

First, data from the Coin ATM Radar shows that there are nearly 22,000 Litecoin ATMs worldwide. Of these, more than 2,900 are operated by CoinFlipATM, more than ATMs for some of the top coins such as Ether or DOGE.

Source: coin operated radar

The increase in active LTC addresses, which is due to the influx of new participants in the network, can therefore be seen in the spread of new addresses. This increase in new addresses is absolutely beneficial for the network, especially since the metric has held up well over the past few days. In fact, the new addresses are at an all-time high, up more than 50% in less than a week from October 11th.

Source: Glassnode

Price action needs even more momentum

Along with healthy on-chain activity, Litecoin continues to trade higher in an ascending triangle pattern and is seen near the resistance line in the pattern. In addition, it tests the 200 MA daily, which increases the likelihood of an outbreak.

Previously, a break above the 200 MA in early September brought LTC a gain of nearly 20%, while LTC’s rally on October 20 a year ago also coincided with a similar move. Could a similar 330% rally for LTC take place a year later?

Source: trade view

However, low expectations on the spot market and low trading volume are still factors that are hindering the coin’s upward trend.

Little profit

While LTC price looks good, Into The Block’s Global In / Out of Money indicator finds that only 66% of LTC holders are profitable at press time.

LTC is trading at $ 187 at press time. In addition, analyst Checkmate.btc emphasized that “anyone who buys LTC is at a loss about BTC and overlooks all-time lows”.

Source: Schachmatt.btc

The aforementioned trend seems to offer a rather ominous outlook for the altcoin at number 15, but there is still hope for LTC with strong on-chain activity, a break above the USD 190 mark can take this coin to a higher level bring.

Join Bitcoin Magazine Telegram to keep track of news and comment on this article: https://t.me/coincunews

Annie

According to Ambcrypto

Follow the Youtube Channel | Subscribe to telegram channel | Follow the Facebook page