- The Litecoin Network has seen a massive increase in activity, which could indicate that LTC is on the rise.
- The price of the product could rise to $85.
Litecoin [LTC] AMBCrypto has discovered that a divergence bullish could be forming, which may lead to the price reaching a new level. Bullish divergence signals the end of an downtrend.
This happens when the value of the coin drops, but the activity in the network is increasing. It was the same with Litecoin.
Santiment’s data shows that the number of unique LTC addresses has reached 704,000 over the last week.
Total active addresses in May were 345,000. Active addresses are those of market participants who have successfully conducted a successful business transaction.
The increase in Litecoin activity was therefore much greater than May’s total.
Are LTC sellers exhausted?
LTC rose from $78.60 in just a few short days to $84.63 the last time this happened. The increase in network activity is not the only factor that supports a potential bounce.
AMBCrypto looked at Relative Strength Index and found it to be a good indicator. aligned with the prediction. The RSI is a momentum indicator that helps participants to identify levels of overbought and oversold.
A reading of 70 or higher indicates that the asset has been overbought. A reading of 30 or less indicates that the cryptocurrency has been oversold.
At the time of publication, Litecoin’s chart showed an RSI close to oversold territory, indicating the coin is close to oversold. This position, from a pricing perspective, could push LTC towards $75.
Nevertheless, as the network grows, it is possible that the price will rise. In this case, $85 could be a realistic target.
A new move could be on the way
AMBCrypto decided to look at Reserve Risk in order to see if LTC was likely trending upwards. Reserve Risk measures the confidence Risk-to-reward of an asset is measured by the ratio between its price and market value.
If the Reserve Risk metric is very high, this means the confidence level is low and that the risk does not justify the reward. A low Reserve Risk, on the other hand is a good thing. breeds A high level of confidence as well as a favorable risk/reward ratio.
As I write this, the metric of Litecoin is at a very low $0.00050. This suggests it may be a good moment to buy LTC. But where could LTC be headed in the near future?
In order to understand this better, we looked at the levels of liquidations. This is a price point where a liquidation event could occur. A cluster of liquidity was visible at press time. It ranged from $80.20 to $87.65.
You can read more about it here Litecoin’s [LTC] Price Prediction 2024-2025
The high levels of liquidity in these areas suggest that prices can rise to such levels. Additionally, the Cumulative Liquidation Levels Delta is negative.
This suggests that Litecoin could retrace its price as the recovery is close. This would mean that the price of Litecoin could reach $85 by the end of this year. next Few weeks.
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Source: ambcrypto.com