In a remarkable 24-hour period, Litecoin’s value surged by 13%, surpassing $70 as of September 24. This price movement gained momentum as the network saw an increase in transaction volume and the spot market experienced heightened activity, allowing it to break through a resistance zone that had previously halted recovery attempts.
Transaction Volume and Network Dynamics Soar
The revised data from CoinGecko shows that Litecoin’s price initially dipped to $59.11 before rebounding to around $70.84. Over the past week, Litecoin’s price has risen by 34.7%, with a monthly increase of 38.6%. Despite this, the yearly performance remains down by 33.1%. This suggests that Litecoin is diverging from general cryptocurrency market trends, even as Bitcoin and the broader market face ongoing pressures.
Initially, the price recovered above $60, with notable buying activity in the $64 to $65 range. As this critical zone, previously a barrier to upward movement, was overcome, Litecoin’s price climbed through levels of $67 and $68, finally establishing itself above $70.
In a single day, over 17 million LTC were moved across the network, amounting to roughly $1 billion in value, coinciding with the price breakout.
On-chain data corroborated this trend, with around 158,500 transactions taking place on the Litecoin network in the last day. The network’s computational power also saw a 4.9% rise, approaching 2.7 PH/s. Recognized as a pivotal entity supporting the Litecoin ecosystem, the Litecoin Foundation monitors its network adoption closely.
As the resistance level was breached, spot trading volume surged close to $948 million, about three times the volume observed around September 18. This substantial increase facilitated a quicker price recovery.
Did Derivatives Market Catalyze Price Momentum?
Yes, activity within the derivatives market also contributed to the uptick. Open interest in Litecoin futures surpassed $500 million. As LTC moved towards $67.80, short positions were liquidated across major exchanges, while long position liquidations remained relatively minimal.
A 24-hour liquidation map unveiled a sequence of leveraged position clusters falling as LTC scaled from $60 to over $70. Liquidity clusters were identified above $72, with subsequent zones at $74 and $74.50. Support levels were identified between $69 and $70, as well as the $64 to $66 range.
The daily chart shows that Litecoin has dramatically risen above the upper band of the Donchian Channel after forming higher lows over several weeks. During this analysis, LTC was trading around $71.88, with upper and lower bands positioned at $63.23 and $50.74, respectively.
The short-term target range of $72 to $75 stands out as the next upward zone. Conversely, if $70 fails to hold, consider potential revisitations to the $68 to $69 range and further dips to $64 to $66.
On the four-hour chart, momentum noticeably quickened, as the nine-period price change ratio climbed to 13.04, and the 14-period Average True Range rose from below $1 levels at the start of September to 2.62. This framework suggests that intra-day volatility might remain high as the daily trend continues.
