- Litecoin’s price increased by 43.8% over seven days, making it one of this week’s top-performing cryptocurrencies.
- The number of LTC addresses in use has crossed 60 million, following steady growth in the last two years.
- While on-chain metrics are signalling overbought conditions, the trading volume and technical outlook are bullish.
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Litecoin prices increased by 43.8% over the past seven days, putting the coin’s price above $100 for the first time since July 2019 and making it one of the best performing cryptocurrencies of the week.
Widespread Market Euphoria
The 43.8% increase in Litecoin’s price over the past week seems to be a result of the liquidity flow produced by Bitcoin’s all-time high and the widespread market euphoria that resulted.
Litecoin, however, performed even better than Bitcoin itself. In fact, it outperformed every other top-50 cryptocurrency in terms of seven-day gains. Only three minor altcoins (Chimpion, Elrond, and SwissBorg) performed better than Litecoin.
Long-term trading volume growth may also be behind the coin’s gains. In November 2020, Litecoin’s trading volume was nearly two times larger than it was in August 2019. The growth in Litecoin’s trading volume is a robust indicator of massive liquidity in the market.
Additionally, Litecoin’s current weekly price chart is very bullish. The cryptocurrency has broken above the symmetrical triangle pattern and 23.6% Fibonacci retracement level, now targeting 2019 highs of $146. The support levels, in case of a downturn, are $90 and $83.
Furthermore, investors are looking for the next double-digit gain, as Bitcoin breaks the psychological flood gates at $20,000. While this could come from any of the thousands of currencies in the market, institutions are more likely to favor a liquid and established cryptocurrency such as Litecoin.