Litecoin Price Rally Driven by Growing Network Demand
The price of Litecoin (LTC) has maintained its position above $70 for three consecutive days, marking the first time since August. This recent rally can be attributed to on-chain analysis that highlights the critical factors driving Litecoin’s price surge.
Increased Funded Addresses Point to Growing Adoption
While other major cryptocurrencies like Bitcoin (BTC) and Solana (SOL) have seen significant gains this year, Litecoin has struggled to find steady market demand. However, on-chain data reveals a steady growth in network demand as the number of funded LTC wallets has increased by 44,000 since the start of the second half of 2023. This indicates growing adoption and expansion of the Litecoin blockchain network.
The Network Attracts New Users with High Transaction Numbers
Litecoin has also experienced a significant increase in new user transactions this month, with the New Adoption Rate reaching a 1-month peak of 49.44% on November 4. This metric measures the percentage of active addresses that made their first-ever transaction, indicating the rate at which new investors are entering the Litecoin network.
Predicting LTC Price: $80 Target
Based on organic network growth and positive on-chain metrics, Litecoin is well-positioned to extend its gains towards $80. However, it must overcome initial resistance at $76 for a confident push towards the target. On the other hand, if the price reverses below $65, there is a support wall from investors who bought LTC at the minimum price of $67.
Hot Take: Litecoin Price Rally Driven by Growing Network Adoption
The recent rally in Litecoin’s price can be attributed to the growing adoption and expansion of its network. With an increase in funded addresses and a high number of new user transactions, Litecoin is experiencing organic network growth. If this trend continues, it could drive the price of LTC towards the $100 mark as 2024 approaches.
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