Altcoin
Litecoin breaks key trendline: Next target $72 and beyond?
Posted:
| Last updated: September 21st, 2024
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- Litecoin has broken above a key trendline, signaling potential bullish momentum with price targets ahead.
- On-chain metrics show mixed sentiment, with cautious large holders and rising activity among smaller participants.
Litecoin [LTC] was showing signs of a potential breakout, with strong bullish momentum building after breaking above a key trendline.
Trading at $65.33 at press time, this move could signal the start of a larger upward trajectory, with potential targets at $72, $82, $90, and $108, according to a post from crypto analyst Jonathan Carter on the X platform (formerly Twitter).
Source: X
The recent breakout 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.
Is Litecoin’s network activity backing 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 press time. This rise in activity indicates a growing interest in Litecoin, which could lend support to the bullish price action.
Source: Bitinfocharts
However, on-chain signals present a more nuanced picture. While net network growth is holding 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 though the number of transactions and active addresses continues to rise.
Are technical indicators pointing to further gains?
Technical indicators for Litecoin point to a mixed yet promising outlook. The Bollinger Bands show an increase in price volatility, with the current price sitting close to the upper band at $66.24.
This suggests that momentum is building for a continued upward move. The Relative Strength Index (RSI) stands at 53.37, indicating mild bullish sentiment. Should the RSI move closer to overbought levels, sustained momentum could be confirmed.
Source: TradingView
Additionally, if Litecoin’s price manages to stay above its recent breakout level, it will reinforce the idea that the rally is more than just a temporary surge.
Key levels to watch for Litecoin’s next move
With Litecoin successfully breaking through its descending channel, several important levels are on the radar. If the current momentum holds, $72 will be the first key resistance level.
Read Litecoin’s [LTC] Price Prediction 2024–2025
Beyond that, Litecoin could continue climbing toward $82, $90, and $108, based on historical patterns and technical projections.
While Litecoin’s recent price action and network activity indicate the potential for further gains, traders and investors should remain vigilant. Monitoring both technical and on-chain metrics will be essential in confirming whether this bullish momentum is sustainable.
