Litecoin Bottoms Out From Monthly Lows: Bullish Trend on the Hor
Litecoin Price bottomed out after retracing multi month low value and reclaimed $80 level.
The increased active addresses and OI data validates the possibility of further growth.
Litecoin encountered a strong support near the multi month low value and jumped higher after retracing the level of $77. The bulls have reclaimed the $80 level however, further gains need the attention of large players.
Let's look into a detailed way including the recent activities performed on the on chain by the large players and try to understand the further path of the LTC crypto.
Active Address Revisists Two Month High!
According to information from the well-known financial website app.sentiment.net, there has been a notable increase in active addresses, reaching a peak not seen in two months.
This surge in active addresses is a favorable sign, suggesting a rise in user engagement. It could also signal a positive shift for the cryptocurrency, potentially marking the conclusion of its recent corrective trend.
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A positive shift in active addresses typically correlates with bullish momentum in the cryptocurrency's price. This metric reflects the volume of transactions occurring within a specific timeframe.
OI Data And Total Supply In Profit Suggest More Room For Growth!
While Litecoin's price remains in an uncertain range, the significant increase in Open Interest (OI) data underscores the market's bullish sentiment. The value of open contracts has soared by nearly 50%, climbing from $350 million to $440 million within a week, indicating a broader market recovery, with Litecoin poised for an early rebound.
<iframe title="Santiment Chart: Percent of Total Supply in Profit (LTC), Total Open Interest in USD (LTC)" width="1170" height="425" src="https://embed.santiment.net/chart?ps=litecoin&pt=LTC&df=2024-03-06T00%3A00%3A00.000Z&sat=shchcfg_0fkcqXWOckcn&emcg=1&emhwm=1&wm=percent_of_total_supply_in_profit%3Btotal_open_interest&wax=0%3B1&wc=%23FFCB47%3B%23FF5B5B&ws=%7B%22node%22%3A%22area%22%7D%3B" scrolling="no"></iframe>
It's noteworthy that 55.6% of Litecoin's total supply is currently profitable, and this figure has been rising steadily. A smaller percentage of total supply in profit typically implies potential for further price appreciation.
Generally, a cryptocurrency is considered to have reached its peak when the total supply in profit exceeds 90%.
The market analysis indicates that Litecoin's value is stabilizing at a robust support level, which has been consistent over several months. The scenario is poised for substantial investors to initiate long positions. For short-term traders, the $90 and $100 levels could serve as targets for realizing profits.
Conclusion.
Litecoin (LTC) crypto encountered a strong support near a multi-month low and rebounded after plummeting below the $80 level. Furthermore, an increment in active addresses and a 50% surge in Open Interest to $440 million suggest a bullish market sentiment and a potential termination of a correction phase.
Currently, 55.6% of Litecoin's supply is profitable, hinting at room for growth. Market analysis shows Litecoin stabilizing and attracting significant investor interest, with $90 and $100 as potential profit-taking zones for short-term investors. Overall, Litecoin appears promising for investment if market uncertainties subside.
Technical levels:
Support levels: $80.07 and $77.27
Resistance levels: $90.37 and $94.27