The weekend dump dragged Litecoin’s price below $80 as the cryptocurrency experienced significant sell pressure.
The accumulation over the past couple of weeks failed to drive the price higher, but the latest data suggest two potentially bullish indicators for the altcoin, predicting a recovery.
Litecoin’s Active Addresses Spike
According to the popular crypto analytic platform, Santiment, the number of addresses interacting on the Litecoin network more than doubled starting from June 4th. This increase in active addresses, from an average of around 345k in May to around 704k in the past week, suggests a significant uptick in network activity and adoption, which is generally considered a positive sign.
Santiment’s insights further indicate that Litecoin’s RSI has entered into the “opportunity zone” region, implying that the asset may be oversold and potentially primed for a price rebound. Combined, the surge in active addresses alongside the favorable RSI reading could potentially signify a rally for Litecoin in the near future.
Despite this, concerns about sell pressure still exist. Another related analysis showed that around 432,070 addresses acquired a total of 6.67 million LTC, purchasing with the price range of $81-$83. This significant buying activity indicates a strong interest at this price level.
If Litecoin manages to climb back to this range, it is likely that some of these investors may try to sell their holdings in an attempt to break even. In such a scenario, a potential selling pressure could create a resistance around the $81-$83 range.
Milestones for Litecoin
Litecoin briefly emerged as the most active blockchain in the world, surpassing Bitcoin and Ethereum in terms of active addresses, suggesting a surge in usage due to cost and time efficiency last week.
On June 6th, IntoTheBlock data revealed that the number of active Litecoin addresses reached the highest level since January. The total number of Litecoin transactions hit 426k during this period of increased network activity.
While a majority of this transaction uptick involved smaller transactions under $10, there was also noticeable rise across transactions of all sizes on the network as indicated by the blockchain intelligence firm.