Litecoin Adds 1M Addresses in 7 Months—Will LTC Price Rally?

Starting this week, the crypto market witnessed a surge in supply pressure as the Bitcoin rally reverted from $68,485 to $65450 This 4.3% pullback stalled the recovery rally for major altcoins including Litecoin. At press time, LTC price trades at $73.44. The LTC price showcased a consolidation trend since last week, recuperating its strength after the early July rally. Will the recent surge in network addresses bolster buyers for a $100 comeback?

LTC Price Eyes 48% Rally Before Major Breakout

Amid the July market recovery, the Litecoin price showcased a reversal from the combined support of $57.7 and a long-coming ascending trendline. This dynamic support (blue) intact since November 2018 stands as a crucial accumulation and prevents crypto holders from major correction.

The bullish turnaround has uplifted the asset by nearly 30% to trade at $73.2, while the market cap jumped to $5.47 Billion. On July 15th, the rising LTC price forecast showed a bullish breakout from the resistance of the prevailing correction trend, projecting a change in market sentiment.

In recent developments highlighted by Jay Milla, the Director of Marketing at the Litecoin Foundation, the total number of Litecoin network addresses with a balance has seen significant growth. 

The total number of addresses with a balance on the Litecoin Network continues to grow! Currently over 8 million and adding over a MILLION hodlers since last year!! Source: @Intotheblock $LTC ⚡️ #HODL https://t.co/ObnimM2rqt

— Jay Ⓜ️🕸️ (@MillaLiraj) July 23, 2024

The network now boasts over 8 million addresses, with more than a million new holders added in the past year alone. This increase underscores the growing interest and participation in Litecoin, which could drive a natural demand for LTC.

If the LTC price showcases its sustainability at $70, the post-breakout rally could rise 48% to $108 and challenge the triangle pattern resistance. In theory, the chart setup leads to a temporary consolidation within two converging trendlines for the prior trend to recuperate its momentum.

However, this sideways action wavers above the multi-year support trendline hints at an accumulation trend in Litecoin.

A potential breakout from the overhead trendline will signal an early sign of trend reversal, offering fresh a long opportunity for sidelined buyers.

On a contrary note, if the triangle resistance remains intact, the sellers could attempt another reversal and prolong the lateral trend.

Technical Indicator:

• EMAs: The recently reclaimed 20D Exponential Moving Average could offer buyers suitable pullback support amid the current recovery.
• ADX: A downsloping trendline in the Average Directional Index slope hints the prevailing bearish momentum is losing strength.