Daily active addresses on the Litecoin blockchain have seen a drastic increase despite days of uninteresting price action. The substantial increase in the number of active Litecoin addresses and general interest indicate that a price increase could be on the horizon.
Litecoin’s price movement was generally the same abandoned over the past month, with the cryptocurrency struggling to maintain a positive price over the past 30 days. However, this could change very soon as on-chain data suggests volatility could occur very soon. The positive on-chain data, which comes in the form of daily active addresses, indicates increased network activity, which could boost Litecoin’s price.
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Active Litecoin Addresses See Massive 75% Increase
Increases in active addresses are generally a harbinger of price increases, especially when they occur over a short period of time. According to on-chain data from IntoTheBlock, Litecoin has seen a massive increase of over 75% in the number of daily active addresses, pushing the metric to its highest point since January. Notably, this increase caused the number of daily active addresses to exceed 602,000 at some point during the week, more than 100,000 more than the number registered on Ethereum.
Interestingly, this activity took place amid a corresponding decline in the price of Litecoin. The altcoin has seen its value fall by 3.5% over the past seven days due to a broader decline in the price of many altcoins.
Similarly, IntoTheBlock observed an increase in the number of Litecoin transactions. In particular, the number of transactions reached 426,000 on Thursday, the highest point this month. However, it is important to note that the majority of these transactions were worth less than $10, and over 174,000 transactions were worth less than $1.
Litecoin Activity Rising!
Yesterday the number was active @litecoin The number of addresses increased by 75%, reaching the highest level since January and surpassing Ethereum by more than 100,000.
So is the number $LTC The number of transactions reached 426,000 yesterday.
While most of the increase… pic.twitter.com/YiSmHZGnP5
— IntoTheBlock (@intotheblock) June 7, 2024
Impact on the price of Litecoin
Overall, the massive increase in the number of Litecoin addresses is a very positive sign for the network and signals the potential for an exciting price rally. However, the positive momentum could end as soon as it started, especially given the small transaction size.
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On the other hand, the increased activity could spread and translate into bullish momentum going into the new week. This in turn could cause a price increase and Litecoin would outperform many altcoins. The first resistance level to overcome is just above $80. Getting above $80 would mean a free move towards $85, which would indicate that the bulls are back in control. However, Litecoin’s rally to $200 remains bleak at the moment, as a move of that magnitude seems unlikely given the recent sluggish price action.
The Litecoin network recently came into existence reached another important milestone by successfully completing 250 million transactions.
Featured image from TechCrunch, chart from TradingView