On-chain Activity Increased: Can Litecoin Price Reach $180 Soon

• Litecoin’s real-world utility is increasing, and high daily active addresses and transaction volume prove it.
• The Litecoin price fell 7.74% during the past 24 hours, and its trading volume increased by 170% to $2.39 billion.

The on-chain activity of Litecoin demonstrated its continued usefulness and relevance in the cryptocurrency market. 72% of Litecoin holders were profitable at the time of writing, demonstrating a high holder profit ratio that may be a sign of confidence.

Litecoin (LTC) price dropped by 25% yesterday (Dec 09) and slipped below the 20-day EMA. The bullish trend in Litecoin price was stripped near the $140 mark. A battle between bulls and bears was seen for a week. Sellers won that battle and dragged down the price by 25% in a day.

After this massive dip, buyers have shown interest, and the LTC price has bounced back to the 20-day EMA. It could be a crucial phase for investors and traders because a trend could be determined.

Can LTC Price Rebound to $180 Mark in December End?

When writing, the Litecoin price was trading at $113.86 with an intraday loss of 7.74%. Its market capitalization was $8.57 billion, and it ranked 23rd in the cryptocurrency market.

Based on the technical chart, the LTC coin price has displayed a short-term dip. The price has been wandering around the 20-day EMA, and a bounce back can be possible.

If the price bounces back and surpasses the 20-day EMA, strong buying momentum can be observed. Once the price sustains over the 20-day EMA, buyers might show interest and eye for the $180 territory.

Alternatively, if the LTC price remains below the 20-day EMA, sellers may dominate. Suppose sellers become stronger, the price may melt to the 200-day EMA. Once the price loses the 200-day EMA, it might be difficult for buyers to bounce back.

The RSI has triggered a death crossover with the RSI-based moving average. MACD has displayed a bearish crossover with the Signal line and the histograms have flipped to red.

Litecoin On-Chain Analysis

Comparing the network to other Layer 1 networks like Dogecoin, Cardano, and Avalanche, Litecoin shows a high level of user engagement with 370,000 active addresses over the past 30 days.

200,000 daily transactions further demonstrate this high level of activity, indicating that LTC is still the preferred option for transactions over more recent blockchain technologies.

Litecoin’s usefulness for actual transactions was highlighted by its noteworthy $10.27 billion transaction volume over the previous month, which is about equal to its market capitalization.

It was a crucial element that frequently drew in users who demanded reliable and quick transactions, whether they were individuals or businesses.

7.94 million addresses with balance are supported by the network, demonstrating a large and devoted user base. There is a strong community belief in Litecoin’s long-term value, as evidenced by the fact that 78% of these holders had held onto their LTC coins for more than a year.

Litecoin Price Analysis Amid This Dip

The Litecoin price has experienced significant volatility, highlighted by a sharp 25% drop. Despite this, there are signs of potential recovery with increased on-chain activity and a significant percentage of profitable holders.

The LTC coin price is currently hovering around the 20-day EMA. It must surpass this level to gain a bullish rebound towards the $180 mark. However, if the price does not trade above the 20-day EMA, it risks further decline, possibly reaching the 200-day EMA.

Disclaimer

This article is for informational purposes only and provides no financial, investment, or other advice. The author or any people mentioned in this article are not responsible for any financial loss that may occur from investing in or trading. Please do your research before making any financial decisions.