- Litecoin monthly use in a year increased by over 109%.
- LTC has been on an uptrend, with over a 6% increase in value in the past 48 hours.
This increase reflected a year-long trend of monthly user growth of 9% on average. Do important metrics appear to be convergent, and if so, what would this signify for LTC, moving forward?
Monthly use on the rise
According to a tweet by Litecoin on 2 January, the monthly usage of Litecoin on one of the top crypto processors increased by 109%.
In just one year, monthly Litecoin use, with the worlds largest crypto processor, increased 109% 🚀 pic.twitter.com/DBXe6OTdib
— Litecoin (@litecoin) January 2, 2023
Litecoin was created to be a quick and efficient cryptocurrency while still being decentralized and open-source. In 2011, it was formed as a fork of the Bitcoin [BTC] blockchain, with an aim of delivering a quicker and lighter version of Bitcoin.
Compared to Bitcoin, Litecoin’s Scrypt proof-of-work algorithm was more user-friendly for miners using standard desktop computers. Because of this, more people can use Litecoin, making it a viable alternative to Bitcoin.
No spike but growth noticeable in volume and active addresses
Looking at the volume chart on Santiment, it became apparent that there was little increase in the number of LTC transactions over the past several days. As of this writing, the total value of all transactions was over 500 million.
The volume seen at press time, as compared to the end of December 2022, could be considered as an increase. The recent uptick was still far lower than the roughly 11 billion volume it saw in 2021.
There was little increase in active addresses, according to a thorough examination of the active address chart for the previous 30 days. A rise from the 6.1 million addresses visible in the middle of December 2022 to the approximately 6.37 million active addresses could be observed as of this writing.
Litecoin continues to surge but…
It was possible to see that LTC had risen above the short and long Moving Averages on a daily timescale (yellow and blue lines). The yellow line acted as the token’s immediate support at the current price level, with the blue line visible farther down.
LTC was trading at about $75 at the time of writing, up 6% during the previous 48 hours.
The Relative Strength Index (RSI) indicator showed that the token’s overall trend was bullish. Given its position, the RSI line rose after crossing the 50 line. The Moving Average Convergence Divergence (MACD) measure, which displayed a bullish crossover, also supported the optimistic narrative.
One could confidently conclude that LTC was in a strong bullish trend when considering the MACD and the RSI.
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The convergence of price movement and volume was also visible upon considering the On Balance Volume (OBV).
The resistance level was around $80 at the time of writing. The resistance may be broken, and a rally to the $100 area may be possible if the bulls can maintain the price action. On the other hand, bears might regain control, and the price could drop below the yellow and blue lines if the rally cannot be sustained.