The price of Litecoin (LTC) is currently trading within a falling wedge pattern around the level of 112.5 USD at the time of writing on Thursday. This is a crucial phase, as a successful breakout could trigger a new bullish wave. On-chain and derivative data are showing positive signals: transaction fees on the Litecoin network have reached a seven-month high, while the number of longs has also hit a monthly peak. Technical momentum is leaning towards the buyers, opening up opportunities for Litecoin to regain its advantage and initiate a bounce back cycle.
Increasing interest in Litecoin among traders
According to data from Artemis Terminal, transaction fees on the Litecoin network have seen a strong increase, rising from 1,000 USD on Saturday to 2,100 USD on Monday. This is the highest level since January 26, indicating the growing appeal of LTC in the eyes of investors as well as the improving liquidity across the entire ecosystem.
Litecoin Fee Chart | Source: ArtemisNot stopping there, the data from CoinGlass continues to reinforce the positive outlook for Litecoin. The Long-to-Short ratio of LTC currently stands at 1.11, the highest in the past month, clearly reflecting the market sentiment heavily leaning towards bullish expectations in the upcoming period.
Litecoin Long-to-Short Chart | Source: CoinglassAlong with the above signals, another fundamental factor that is noteworthy is the hashrate of the Litecoin network. In just over 18 months, the hashrate has tripled, demonstrating the increasing safety level of the network, while affirming the sustainable confidence of the mining community in the future of Litecoin.
Litecoin Price Outlook: Breakout Opportunity from Falling Wedge Pattern
Since the beginning of August, the price of Litecoin (LTC) has gradually formed a falling wedge pattern, identified by connecting the peaks and troughs with two converging trend lines. In technical analysis, this is often seen as a potential pattern for a bullish breakout, providing a clear advantage to the buyers if the breakout scenario occurs.
In the short term, LTC has found important support around the 100-day EMA at 106.13 USD on Monday. From this level, the price bounced back about 4% in just the next two sessions, before stabilizing around 112.54 USD on Thursday. This trend indicates that demand is still present, even though the market is still oscillating within a cautious range.
If the price successfully breaks out above the upper boundary of the wedge pattern, Litecoin has the potential to extend its bounce back and head towards the 134.29 USD region – the peak set on August 14. This is considered a reasonable short-term target in a bullish scenario.
LTC Price Chart | Source: TradingViewThe momentum indicators are also supporting this outlook. The RSI on the daily timeframe has reached 48, near the neutral threshold, indicating that the downward momentum is gradually weakening. At the same time, the MACD is narrowing the gap between the two signal lines, while the red histograms are gradually decreasing, signaling a high likelihood of a bullish crossover occurring soon.
However, it is still necessary to pay attention to the adjustment scenario. If the buying force is not strong enough, LTC price may return to test support around the 100-day EMA at 106.13 USD before determining the next trend. This will be a key area to assess the strength of the buyers.
Overall, Litecoin is at a sensitive technical area, where any breakout could determine the next direction. The combination of on-chain data, derivative signals, and technical momentum all leans towards a bullish possibility. If the breakout is confirmed, LTC could fully regain its growth momentum with a short-term target around 134 USD.
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Traders focus on Litecoin - The falling wedge pattern reveals a target of 134 USD
The price of Litecoin (LTC) is currently trading within a falling wedge pattern around the level of 112.5 USD at the time of writing on Thursday. This is a crucial phase, as a successful breakout could trigger a new bullish wave. On-chain and derivative data are showing positive signals: transaction fees on the Litecoin network have reached a seven-month high, while the number of longs has also hit a monthly peak. Technical momentum is leaning towards the buyers, opening up opportunities for Litecoin to regain its advantage and initiate a bounce back cycle.
Increasing interest in Litecoin among traders
According to data from Artemis Terminal, transaction fees on the Litecoin network have seen a strong increase, rising from 1,000 USD on Saturday to 2,100 USD on Monday. This is the highest level since January 26, indicating the growing appeal of LTC in the eyes of investors as well as the improving liquidity across the entire ecosystem.
Litecoin Price Outlook: Breakout Opportunity from Falling Wedge Pattern
Since the beginning of August, the price of Litecoin (LTC) has gradually formed a falling wedge pattern, identified by connecting the peaks and troughs with two converging trend lines. In technical analysis, this is often seen as a potential pattern for a bullish breakout, providing a clear advantage to the buyers if the breakout scenario occurs.
In the short term, LTC has found important support around the 100-day EMA at 106.13 USD on Monday. From this level, the price bounced back about 4% in just the next two sessions, before stabilizing around 112.54 USD on Thursday. This trend indicates that demand is still present, even though the market is still oscillating within a cautious range.
If the price successfully breaks out above the upper boundary of the wedge pattern, Litecoin has the potential to extend its bounce back and head towards the 134.29 USD region – the peak set on August 14. This is considered a reasonable short-term target in a bullish scenario.
However, it is still necessary to pay attention to the adjustment scenario. If the buying force is not strong enough, LTC price may return to test support around the 100-day EMA at 106.13 USD before determining the next trend. This will be a key area to assess the strength of the buyers.
Overall, Litecoin is at a sensitive technical area, where any breakout could determine the next direction. The combination of on-chain data, derivative signals, and technical momentum all leans towards a bullish possibility. If the breakout is confirmed, LTC could fully regain its growth momentum with a short-term target around 134 USD.
Emma