- Litecoin has broken above a key trendline, indicating potential bullish momentum with price targets ahead.
- On-chain statistics show mixed sentiment, with cautious large holders and rising activity among smaller participants.
Litecoin [LTC] showed signs of a possible breakout, building strong bullish momentum after breaking above a key trendline.
Trading at $65.33 at the time of writing, this move could mark the start of a bigger upside trajectory, with potential targets at $72, $82, $90 and $108, according to a after from crypto analyst Jonathan Carter on the X Platform (formerly Twitter).
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The recent break above the descending channel is a promising development for Litecoin’s price action. However, technical and on-chain metrics will be critical in determining whether this momentum can be sustained in the coming days.
Does Litecoin’s network activity support the price action?
On-chain activity for Litecoin has shown promising growth, with active addresses increasing from 285,924k to 289,064k in 24 hours at the time of writing. This increase in activity indicates growing interest in Litecoin, which could provide support to the bullish price action.
Source: Bitinfocharts
On-chain signals, however, provide a more nuanced picture. While net network growth remains at a neutral 0.34%, concentration levels, which reflect the behavior of large holders, are slightly bearish at -0.27%.
Source: IntoTheBlock
This bearish concentration suggests that some larger investors may still be cautious even as the number of transactions and active addresses continues to rise.
Do technical indicators point to further gains?
Technical indicators for Litecoin point to a mixed but promising outlook. The Bollinger Bands are showing an increase in price volatility, with the current price close to the upper band at $66.24.
This indicates that momentum is building for a sustained upward move. The Relative Strength Index (RSI) stands at 53.37, indicating mildly bullish sentiment. Should the RSI move closer to the overbought level, continued momentum could be confirmed.
Source: TradingView
Furthermore, if Litecoin’s price manages to stay above the recent breakout level, it will reinforce the idea that the rally is more than just a temporary increase.
Key levels to watch for Litecoin’s next move
Now that Litecoin has successfully broken its declining channel, several key levels are on the radar. If current momentum continues, $72 will be the first major resistance level.
Read Litecoins [LTC] Price forecast 2024–2025
Additionally, Litecoin could continue to rise towards $82, $90 and $108 based on historical patterns and technical projections.
While Litecoin’s recent price action and network activity point to the potential for further gains, traders and investors should remain vigilant. Monitoring both technical and on-chain metrics will be essential to confirm whether this bullish momentum is sustainable.