Positive on-chain data: Is Litecoin (LTC) ready to break through?

Litecoin (LTC) is fluctuating slightly around 111.90 USD on Tuesday afternoon, shortly after breaking above the "falling wedge" pattern – a technical signal often indicating a bullish trend. Just a day earlier, the project attracted attention by announcing the integration of a new wallet supporting the MimbleWimble Extension Blocks (MWEB) feature, making privacy the default on the network, thus sparking optimism within the investor community. Meanwhile, on-chain data recorded a volume surge, reaching its highest level since June 2023.

Litecoin is preparing to launch a new privacy-focused wallet

The Litecoin Foundation, in collaboration with AmericanFortress, has announced the launch of the new Litecoin-native wallet (LIT) on Monday, focusing on enhancing security. The product is expected to be released in September, integrating advanced technologies such as MWEB, FortressNames, and c-filtering mechanisms, providing a user-friendly experience and maximum privacy protection for users. This move not only expands the secure infrastructure of the Litecoin network but also reflects a strong commitment to addressing the top concern of cryptocurrency investors: privacy.

Positive signals from network data and miner confidence

On-chain data continues to provide optimistic signals for bullish prospects. According to Santiment, daily trading volume has surged to 122.67 million on Monday from 105.12 million on Sunday – the highest level since the beginning of 2023 and also a record not seen since June 2023. This trend indicates that activity is returning to the network, along with an increasingly deep level of participation from the user community.

Litecoin trading volume chart | Source: SantimentMeanwhile, the Litecoin network is also approaching a Hash Rate milestone of 3.5 Petahash/s, marking a new peak in its history. This not only serves as evidence of the increasing security strength but also reflects the growing confidence of miners in the Litecoin ecosystem.

Litecoin Price Prediction: Breakout of the Falling Wedge Pattern

The price of Litecoin (LTC) has broken above the falling wedge pattern - formed since the beginning of August by connecting the peaks and troughs through two trendlines - on Sunday, giving an advantage to the bulls. However, right at the beginning of this week, LTC quickly adjusted slightly by 1.87% on Monday. By Tuesday afternoon, the price continued to fluctuate downwards, approaching the upper boundary of the pattern.

If LTC holds the support area around the upper boundary and bounces back, the upward momentum could extend, aiming for the peak on August 14 at 134.29 USD.

LTC/USDT daily chart | Source: TradingViewOn the daily timeframe, the RSI indicator is sliding below the 50 level – an early sign that selling pressure may intensify. To maintain a positive trend, the RSI needs to quickly recover back above the neutral level. At the same time, the MACD indicator is forming a bullish cross, suggesting the possibility of an impending breakout.

Although the short-term outlook remains positive, LTC still faces the risk of a correction, which could retreat to the 100-day EMA at 106.74 USD if selling pressure increases.

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