Thursday, June 17, 2021
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InicioAnalysisLitecoin price reaches 3-year high due to increasing network activity

Litecoin price reaches 3-year high due to increasing network activity

Litecoin rose to $195 before sellers pushed it down to $180.

Current Litecoin rate

Litecoin is among several altcoins that shone as Bitcoin pulled back from its recent all-time high. The cryptocurrency mirrored other big winners like Binance Coin, Cardano and ChainLink.

LTC price hit a high of 195 on Wednesday before correcting gains amid a lull in the broader market. The move was the highest Litecoin price level in nearly three years. The last time LTC/USD traded at the $195 level was in March 2018.

Litecoin price rose as the network grew

At the time of writing, LTC is trading at $186. The price is about 3% lower than its 24-hour opening price, but it has been trading more than 22% higher for the past seven days.

This rise in Litecoin price coincides with an increase in network activity, according to data from the on-chain analytics platform Glassnode. According to the company, the active addresses rose to 231,973 and thus to a new high, which represents the greatest growth since June 5, 2020.

There has also been an increase in new addresses. The increase to 101,862 was the highest value since April 2019. The increase in new addresses is an important measure. It suggests that more investors have joined the network, increasing the momentum on the buyer side.

Litecoin course graphic
Litecoin chart with an increase in new addresses. Source: Glassnode

Litecoin price outlook

LTC/USD

Litecoin (LTC) failed to maintain momentum after hitting the multi-year high of $195. This is illustrated by the previous candle holder. The bears’ aggression seems to have evaporated. Bulls appear energized after purchasing the dip.

Currently, the main bull target is to extend gains above the $186 resistance level. This would allow them to retest the February 10th intraday highs. If the stubbornness of the sellers is broken, the upward move will likely push LTC/USD above $200 and see the coin level off above $220.

LTC / USD Rate
LTC/USD daily chart. Source: TradingView

The MACD and RSI indicators are giving bulls the upper hand, with prices above $250 offering a legitimate short-term target.

However, bears should see another big sell-off if prices hit the above levels.

If bulls don’t hold LTC/USD above $185, a higher profit booking could accelerate a retreat towards the 20-day exponential moving average. The EMA offers a buffer zone for $155.

If the consolidation is not above the price level, a horizontal support line of $130 can remain as the main anchor. A breakdown beyond this support line could tip LTC/USD towards $100.


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