As the network grows, is LTC ready to break out?

Over the past decade, many altcoins have come and gone while some have struggled to stay alive. In the meantime, Litecoin has managed to maintain its presence in the market despite occasional speed disruptions and range trading. In fact, LTC rose more than 50% in early November in response to Bitcoin and the larger market sell-offs.

With LTC’s price stalling, many in the industry are concerned whether digital silver will break out or continue its upward momentum in the range it held after falling in May.

Upward momentum can gain strength if …

After hitting a multi-week high of $ 302 on November 10, LTC price began to follow the bearish trend of BTC. While LTC’s price has fallen from $ 300 at press time, with a loss of more than 25%, it’s important that the coin stay above the $ 200 mark.

Source: TradingView

At press time, LTC is hovering at $ 217, up 1.7% for the day. If a rally above $ 220 is possible, bullish momentum will be maintained. Heightened buying pressure could trigger a rally, but a sustained uptrend will be crucial for any further recovery in LTC price.

Acceptance rate

The past year has been quite a lot of fun for LTC as Litecoin adoption skyrocketed over the course of the year. When LHV Pank, an Estonian banking and financial services company, recently announced that it would be giving its customers the opportunity to invest in Litecoin and other cryptocurrencies, this once again sparked positive market sentiment.

In fact, LTC’s active addresses have been in a parabolic upward trend since December 2020, suggesting that the network will continue to grow as users increase.

Source: Kraken Intelligence

In addition, the number of active addresses grew vertically in April 2021, creating a new ATH on October 10th. The same was seen during the 2013 and 2017 LTC ​​rallies, which drove the price from $ 23.5 to $ 369 in December 2017.

Ready to come back?

Does this mean digital silver is ready for a comeback? While on-chain data shows a growing network and activity, LTC’s coverage rate has yet to hit the “overbought zone”.

Source: Kraken Intelligence

In addition, with the BTC correlation at lower levels, LTC could take advantage of the “old season”. During the 2013 and 2017 bull runs, LTC stood out with gains of 638% and 1,160%, respectively, over a period of several weeks. So another surprise from LTC won’t come as a surprise.

However, market volatility is difficult to predict, so it is important that you do your own research before investing.

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