Bitcoin (BTC) may well seem to be on the road to recovery as its price sits at the $50,000 mark. The same thing goes with other cryptocurrencies. The altcoin – Litecoin (LTC) is a noteworthy example, not to mention that as of writing it’s the 12th largest cryptocurrency in terms of market capitalization. With most of what’s happening with LTC leans towards the positives, the digital currency’s growth is believed to be having a different potential.
Anything but up for litecoin
If the daily chart is anything to go by, Litecoin saw a significant resistance at $190. For the uninitiated, LTC is having quite the struggle just under that level since mid-August. Nonetheless, it has been observed that an impressive seven straight green candles have aligned during the four-hour timeframe over the last couple of days. That was observed back in late May after the altcoin’s price surged after its price endured a four-month slump.
Further, a promising indication of a sustained rally and a stable northbound trajectory has also been observed after litecoin has recently been making higher lows. From the looks of it, LTC has been building up what is called an ascendant triangle pattern on the one-day chart. That said, this is also an indication of a bullish formation that is expectant of an upside breakout.
LTC at $200; Transaction count hits an ATH
As of press time, Litecoin’s price is at $217. Another thing worth noting is that the increase in LTC’s addresses can be deemed as a sigh of relief for both its participants and the network itself. In line with this, new addresses on the altcoin have surged to at least 60 percent by the end of last month.
Let’s not forget about the transaction count for litecoin reaching an all-time high. Now, one might ask how this is important. This provides some sort of proxy for block space demand to surge and it’s an indication that the network is shooting up and in demand. It’s also highly probable that this has something to do with the MimbleWimble Extension Blocks (MWEB) update.
As for MWEB, the upcoming system tweak is reported to have an end of this year roll out if the developer – David Burkett’s statement is anything to go by. As for its August progress report, it required rebased wallet adjustments. This is said to be on top of v0.21, cleaner address/key generation, and management including the release of process for 0.21 with Taproot.
Now that Litecoin’s price is over the $200 mark, the analyst Ali Martinez highlighted that as traders delve into lengthy positions, they need to be wary of the looming supply barrier over the horizon.
Additionally, on September 1, In/Out of Money Around the Price (IOMAP) metric revealed that over 120,000 addresses had purchased almost 4.70 million litecoins back when its price was between $183.35 and $188.58. In just a single day though, IOMAP pointed out that LTC got the better of all the major resistance barriers.
Push to $280?
Early Friday, litecoin’s price prompted what is called a double to pattern (a.k.a. cup and handle pattern). The important level to look into was the June 4 and August 23 highs which according to reports was at $194.29. Now, these two highs failed to seamlessly align themselves, but the price action following the break to $194.29 is indicative that such a level is significant. Further, the two chart patterns which share an identical objective of $280.82, will now stay in play provided that litecoin trades well above today’s low of $178.93.