The cryptocurrency market has been on a retreat during most of November, with the crackdown in the crypto market turning the sentiment bearish once again, after the strong bullish run in September. Most cryptocurrencies made some considerable losses. Litecoin shed more than a third of its value, while some other cryptos, such as Binance coin, have been holding up better. Now the market is showing bullish signs again, as the sentiment improves, so let’s see where LTC is headed now.

Litecoin Daily Chart Analysis – 3 Daily Bullish Candlesticks

Litecoin forming a strong bullish reversing pattern

Litecoin was holding up well at the top, just below $300, after surging from around $200 early this month. But, the deteriorating sentiment in the crypto market, coupled with some profit-taking after a strong month in October, pulled LTC down.

The 50 SMA (yellow) was acting as support on the daily chart, but that moving average was broken last week, and the 100 SMA (green) turned into support. The decline stalled there, and after it formed a bullish hammer candlestick on Sunday, we have seen two more bullish candles, which provided a strong bullish reversing signal. Now, LTC/USD has climbed above the 50 daily SMA again, and if the sentiment remains as it currently is, this cryptocurrency will soon head for $300 again.

Litecoin Fundamentals – Increasing Demand and Activity for LTC

Fundamentals seem solid for Litecoin as well. The Litecoin Visa debit card will increase LTC transactions, which have come down off the September highs, but still remain high. Meanwhile, the crypto exchange, Kraken, is saying that Litecoin is seeing increased demand and network activity. Kraken has been looking at the on-chain metrics of LTC to see whether this crypto can repeat its bullish performance of 2017.

Kraken came to some conclusions, which you can see below:

“First, the number of active addresses has been in a parabolic uptrend since December 2020, which indicates that the network continues to see increasingly greater activity, amid the rally in the broader market. Second, the number of active addresses has recently gone vertical, which has been the sharpest increase in activity since April 2021, a sign of a sudden burst in network demand and activity.”

“At the time of writing, the 7-day moving average of new addresses (with non-zero balances) stands at an all-time high of 308,827. The 7-day moving average of new addresses recently surpassed the prior all-time high of 270,000 on October 9, 2021, and continued to rise into November.”

This shows that both activity and demand have increased for Litecoin, which is apparent from the price action in the last month. While Litecoin was quite boring for months, but now, the price action has become a lot more interesting, with a bias to the upside. We are keeping our buy LTC/USD signal, targeting $300 first and then to $500.

Litecoin Live Chart