LTC ready to shoot above $ 60 while network usage is skyrocketing

• LTC / USD has stabilized above a significant technical barrier.
• The metrics on the chain imply that the price is positioned for further growth.

Litecoin (LTC) is the eighth largest digital asset with a current market capitalization of $ 3.8 billion and an average daily trading volume of $ 3.7 billion. The coin has gained over 23% over the past seven days, becoming the top performing cryptocurrency in the top 10 on a weekly basis.

The coin reached $ 59.9 on October 25 before the upward momentum began to wear off. At the time of writing, LTC / USD is changing hands at $ 56.9, mostly unchanged on a daily basis; it is moving within the short-term bearish trend in an environment of high volatility.

LTC / USD: bullish trend that is gaining ground

Despite withdrawing from the recent high, LTC is in a good position to continue the recovery as long as it remains above $ 56.8. This barrier that served as local resistance over the weekend has now turned into a strong support that has the potential to limit the downward correction. On the intraday charts, it is also strengthened by the lower line of the Bollinger band and the 1 hour EMA100.

LTC / USD 1 hour

If this support area is broken, the sell-off could gain traction with the next focus on a $ 51 approach. This level served as significant resistance for the coin in September and for most of October until it is was broken on 21 October. The next crucial bearish target is $ 45.5, followed by $ 41.5.

Meanwhile, if $ 56.8 is verified as support, LTC / USD may continue to rise with the next focus on the $ 60 psychological barrier strengthened by the recent 1-hour high and topline of the 1-hour Bollinger Band. Once out of the way, the upside is likely to take hold with the next focus on $ 64. This resistance halted the currency’s recovery in August.

12-hour LTC / USD chart

On-chain LTC metrics

The coin chain supports the bullish scenario. According to Glassnode, the number of active LTC addresses has grown by more than 15% in the past 24 hours, from 6,596,062 to 7,594,896, which means active participation in the Litecoin network is on the rise.

The increased usage usually implies that the demand for the cryptocurrency is growing, which is a bullish sign for the price.

Meanwhile, In and Out of the Money Positioning (IOMP) data confirms strong resistance to approaching $ 60. A cluster of 74,000 addresses containing over 2.6 million coins have their breakeven point there, which it means that the bulls may have a hard time passing. However, once interrupted, the road to the north will be mostly clear.

On the downside, the $ 56- $ 54 offering area confirms the strength of the aforementioned $ 56.8 technical support. Over 81,000 addresses folding 2.7 million coins will defend their tie there. The next supply wall is seen around $ 51, which coincides with the technical barrier above.

Litecoin IOMP data

Source: Intotheblock

Key levels to keep an eye on

Technical and on-chain data indicate that LTC is well positioned for further growth; however, we will need to see recovery above $ 60 for the upside to gain traction. A sustainable move above this will signal that the short-term bullish trend is back on track.

The downward correction will be limited by the previous resistance at $ 56.8, while a sustainable move below this area will invalidate the immediate bullish scenario and focus on $ 51.