The jump above $83 and the big 8% surge was mostly fueled by the movement of dormant tokens in large wallets that have been accumulating and holding LTC for the last few months. According to the on-chain data provided, it was the largest dormant token movement tracked in four years.
However, Santiment analysis might be confusing: the movement of large assets on the network itself should not provide any additional support to the coin’s value since it does not provide any funding for bulls who are willing to push the asset’s price upward. Historically, the movement of dormant coins has been a sign of an upcoming surge of selling pressure on the market. However, the logic behind Santiment’s analysis does not rely on the direction of the aforementioned assets.
Litecoin correction was contained at the $64 support
Michaël van de Poppe expects LTC price to rally 22%
LTC is a good buy on the current retracement for short-term investors
Litecoin (LTC/USD) may be well on course to another bullish rally. Despite the cryptocurrency cooling off from its recent gains, bulls have defended the $64 support as the price retraced. LTC has now initiated a short-term recovery above the support.
While technicals depict a potential rally in LTC, crypto analyst Michaël van de Poppe says the uptick will continue. Poppe says LTC price could rise by at least 22% from the current price level. To emphasise his point, the analyst notes Litecoin is demonstrating strengths. He says he will be interested in some scalp trades at the $69 level, with options to go long around $66.75, targeting $78 and $84. LTC traded at $67.48 as of press time and was on a slight bear correction.
Meanwhile, development activity on Litecoin is on the rise. Santiment data indicates that activity grew strongly in September before peaking in October. As of December 27, Litecoin was the second most active chain. It recorded $2.88 billion in transaction volumes after Bitcoin’s $3.98 billion.
LTC recovers at the 38.2% fib level but above $64 support
Incorporating the Fibonacci retracement levels on LTC daily chart, the token’s price initiated a recovery at the 38.2% fib level. Momentum increased as the cryptocurrency recovered the 50% fib level. LTC is also maintaining a short-term bullish trendline. The bulls have now successfully defended the $64 support.
LTC concluding thoughts
Technicals and fundamentals align for LTC price. There is a clear uptrend, with price recovering key levels that spell a bullish surge for the cryptocurrency.
LTC is a good buy, with a price potential of up to $84, the previous resistance level. However, buyers would still target areas around $70, the 61.8% fib level, and $76, the 78.6% fib level. A further uptick in LTC will depend on the ongoing fundamentals and developments. Investors can buy on the short-term retracement.
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