Daily active addresses on the Litecoin blockchain have seen a drastic uptick despite days of uninteresting price action. The substantial rise in active Litecoin addresses and overall interest suggests a price rally could be on the horizon.
Litecoin’s price movement has generally been left behind in the past month, with the cryptocurrency struggling to retain a positive price in the past 30 days. However, this could change very soon, as on-chain data suggests volatility could be happening very soon. The positive on-chain data, which comes in the form of daily active addresses, suggests increased network activity, which could increase the price of Litecoin.
Litecoin Active Addresses See Massive 75% Surge
Increases in active addresses are generally a precursor to price rallies, especially when they occur in a short period of time. According to on-chain data from IntoTheBlock, Litecoin has seen a massive surge of over 75% in its number of daily active addresses, pushing the metric to its highest point since January. Particularly, this surge saw the number of daily active addresses reach above 602,000 at some point during the week, over 100,000 more than those recorded on Ethereum.
Interestingly, this activity has come amidst a corresponding decrease in the price of Litecoin. The altcoin has seen its value drop by 3.5% in the past seven days in a wider decline in the price of many altcoins.
Similarly, IntoTheBlock noted an increase in the number of Litecoin transactions. Particularly, the number of transactions reached 426,000 on Thursday, which is its highest point this month. However, it is important to note that the majority of these transactions were worth less than $10, and over 174,000 transactions were worth less than $1.
Litecoin Activity is Spiking!
Yesterday, the number of active @litecoin addresses surged by 75%, reaching the highest level since January and surpassing Ethereum by over 100,000.
Similarly, the number of $LTC transactions hit 426,000 yesterday.
While most of the increase is… pic.twitter.com/YiSmHZGnP5
— IntoTheBlock (@intotheblock) June 7, 2024
Impact On The Price Of Litecoin
Overall, the huge uptick in Litecoin addresses is a very positive sign for the network and hints at the potential for an exciting price rally. However, the the positive momentum could end as soon as it started, especially considering the small transaction sizes.
On the other hand, the increased activity could extend and translate into bullish momentum in the new week. This in turn could kickstart a price run up and Litecoin outperforming many altcoins. The first resistance level to overcome is just above $80. Getting above $80 would set a free move to $85, which would then suggest that the bulls are back in control. However, Litecoin’s rally to $200 remains bleak at the moment, as move of that magnitude seems unlikely given the recent sluggish price action.
Recently, the Litecoin network reached another significant milestone by successfully completing 250 million transactions.
Featured image from TechCrunch, chart from TradingView