The impressive rise of Litecoin this year has seen it surge by nearly 50%. However, the recent market crash briefly caused the altcoin to drop below $87. With Litecoin’s current trading price exceeding $107, selling pressure has subsided.
Supporting its price trajectory is the strong growth of its network.
Increased Participation in the Litecoin Network
The network activity of Litecoin has seen a significant surge. In fact, data compiled by IntoTheBlock reveals that the average daily active addresses have increased to 401,000 compared to 366,000 in 2023. Meanwhile, network activity reached its peak in early January, with an impressive 1.37 million active addresses in a single day, surpassing the daily activity of Bitcoin and Ethereum at the time.
This surge indicates that the utility and user participation of the protocol continue to improve in the bull market of the cryptocurrency industry.
Litecoin has also exhibited data revealing long-term investor confidence, with 53.9% of all LTC mined never moved for over a year, indicating that a significant portion of its supply remains off the market.
Furthermore, 85.8% of LTC has been held for over a month, highlighting investors’ preference for continued ownership. The average holding time per LTC stands at 2.4 years, indicating that many holders consider it a long-term investment commitment.
What’s next for Litecoin?
A cryptocurrency analyst predicts that Litecoin may break its previous all-time high (ATH) and reach $500 in the ongoing bull market.
He acknowledges that its growth trajectory may appear slow compared to other crypto assets, but he emphasizes that its strong fundamentals and historical resilience are key factors driving the upward momentum.
Another comparison of Litecoin’s current market behavior with its performance during the bull market of 2017 suggests that history may be about to repeat itself. The cryptocurrency seems to display positive signs of breaking out from a prolonged consolidation phase, with the relative strength index (RSI) and moving average convergence divergence (MACD) indicators indicating a bullish trend.
These technical signals suggest that the crypto asset may be preparing for a surge, positioning it as a potential “dark horse” in the next cryptocurrency rebound.
