Litecoin (LTC) Price Analysis: Bullish Signals Emerge as Active Addresses Surge

Litecoin (LTC) saw a breather in the last trading session, finally seeing a major uptrend after previous downtrends. With increased market activity and a noticeable rise in daily active addresses, LTC is regaining its footing in the market.

Litecoin (LTC) experienced a period of respite in the last trading session, finally witnessing a significant uptrend following previous downtrends. With increased market activity and a noticeable rise in daily active addresses, LTC is regaining its footing in the market.

This article delves into Litecoin’s price action, active address trends, and the implications of these signals.

Key levels to watch in Litecoin’s price trend

At the time of writing, Litecoin’s price hovered around $106, situated just above a critical support level of $100. This level is further reinforced by the 50-day moving average, which has acted as a consistent safety net for the cryptocurrency.

On the upside, $120 remained a formidable resistance, as previous attempts to breach this level in December were met with strong selling pressure.

Source: TradingView

The golden cross, where the 50-day moving average crosses above the 200-day moving average, continued to provide a bullish signal. If Litecoin sustains its momentum and breaches the $120 mark, it could pave the way for a stronger rally toward $140.

Active addresses surge: Growing network activity

According to data from IntoTheBlock, daily active addresses have shown a consistent rise in tandem with Litecoin’s price recovery. An analysis of the trend revealed that the number of active addresses climbed from October to December, reflecting increased user activity and interest.

The average daily active addresses for Litecoin reached 401,000 in 2024, as compared to 366,000 in 2023, indicating a surge in network activity.

Source: IntoTheBlock

This surge is likely driven by traders capitalizing on LTC’s bullish momentum. The chart highlights the correlation between network activity and price action, particularly during periods of market excitement. This interplay showcases the role of increased participation in driving LTC’s value.

Market outlook: Bullish signs persist

Overall, Litecoin’s upward trajectory and growing network activity painted an optimistic picture for the cryptocurrency. However, investors were advised to remain cautious as the $120 resistance level loomed large.

A breakout above this could signal a sustained bull run, while failure to hold the $100 support might lead to renewed selling pressure.

Check out the Litecoin Profit Calculator to see how your portfolio is performing.

As Litecoin approached the end of 2024, its performance was set to be closely watched, with its network activity providing valuable insights into its potential.