- As the crypto market shakes off weekend losses, Litecoin (LTC) bulls are making a notable comeback.
- LTC makes a mild recovery, bulls poised to tap $80 despite on-chain data spotlighting potential obstacles.
The new week has kicked off with digital currencies making a turnaround and potentially reclaiming previous gains in the days ahead. Litecoin (LTC) is one of many altcoins making an upward correction. With an upward rebound sending LTC to former price levels, sentiments are becoming even more positive.
According to data from CryptoNewsFlash, Litecoin bulls enjoyed a decent rally in the previous week, causing investors to rake in mass profits. The asset saw its gains soar by more than 6% over the last 7 days. Over the last 60 days, LTC bulls have struggled to rally above their previous levels. The turnaround of events hints that LTC bulls are making a highly anticipated recovery.
Notably, LTC made a rebound above the $70,000 price mark last week. After 18 days of remaining stagnant under the $70 price mark, LTC bulls reclaimed their position, causing prices to close at $70.56 on February 8th.
However, on-chain data hints at a possible reversal in the long term. LTC’s recent run is considered to be an isolated price pump. Price pumps typically occur when market players are artificially inflating the price of a cryptocurrency asset. LTC’s recent price pump is an isolated one that often takes place before a Bitcoin price rally.
As Santiment revealed in a recent post ;
“Litecoin has had a mild emergence, rebounding back above $70 for the first time since January 22nd. For now, trading volume is rather dormant for the #19 ranked market cap assets. But monitor LTC, as isolated pumps are often predecessors for BTC.”
How Is LTC likely to Perform in the Near Term?
After failing to go through in the previous week, LTC previously faced resistance around the $71 price level. The next support level sits around the $70.52 price mark. LTC could drop below $70 if selling pressure increases.
At report time, LTC is trading for $72.93. As daily gains surge past 3%, LTC is poised to continue its upclimb and potentially tap the $75 price mark. Notably, trading volume is in the green zone and has gone up by 30% over the past 24 hours. Market cap has also followed suit. Sustained bullish momentum could trigger a bull run that could send LTC to $80.
Meanwhile, the Litecoin blockchain has remained committed to network improvement. Per recent blockchain data shared by the network, Litecoin has processed more than 20 million transactions in 2024.
The new development signals continued growth and adoption. Additionally, the current Litecoin hashrate is 1.06 PH/s with a mining difficulty of 32.67 M at block height 2,629,737. These metrics highlight strengthened network security across the Litecoin ecosystem.
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