Activity on the Litecoin network indicates higher prices are imminent.
Litecoin has fallen by 12% in the last 24 hours. Despite significant losses, LTC is on the rise in terms of activity. Prices could target $290 as long as the $200 support level is won.
Volatility has taken over the cryptocurrency market, creating over $8 million in Litecoin liquidations in the past 24 hours. Regardless, on-chain measurements show LTC is well positioned for higher highs.
The recent drop resulted in over $8 million in liquidations. However, network activity shows new money flowing into the digital asset as a sign of optimism. Litecoin addresses holding 10,000 to 100,000 coins have increased their position in the past month. These major investors have added more than 720,000 LTC worth approximately $160 million to their holdings.
Increasing buying pressure from whales coincides with a significant increase in the number of users on the network. The number of new addresses has increased by more than 79.5% since August 7, with around 200,000 new addresses on the network at the time of writing.
Network growth is generally considered one of the most accurate price predictors. In general, the constant increase in the number of new addresses created on a particular blockchain causes prices to rise over time. Further buying pressure could push LTC higher.
Still, IntoTheBlock’s IOMAP model reveals that there is one hurdle Litecoin must overcome before reaching its upside potential.
About 41,000 addresses previously purchased 7.07 million LTC at an average price of $217.21. This area may have the ability to absorb some of the recent buying pressure. Underwater holders may try to break out of their positions, slowing the uptrend. However, if Litecoin can break through this hurdle, it could climb to $290.
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