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- Litecoin has achieved a milestone by inscribing a record 24 million Ordinals on its blockchain network, highlighting its robust capacity to handle increased transactions efficiently.
- With network engagement hitting new highs, reflected in a significant increase in active addresses to 704,000, Litecoin could be poised for a price rebound.
In a major milestone achievement, the Litecoin Foundation announced that they have managed to inscribe a record 24 MILLION Ordinals on the Litecoin blockchain network. This surge in activity indicates a robust and efficient network capable of handling increased transactions without compromising speed or security.
A record 24 MILLION Ordinals have now been inscribed on Litecoin! #Litecoin #Ordinals $LTC pic.twitter.com/NpV5CLhghJ
— Litecoin (@litecoin) June 13, 2024
The rise in ordinals, or individual units on the Litecoin blockchain, underscores the network’s capacity to manage a higher volume of assets and transactions. This milestone is significant for Litecoin’s ecosystem, demonstrating its programmed scarcity and potential influence on market dynamics.
Litecoin Forms Bullish Divergence Amid High Network Activity
Litecoin [LTC] has formed a bullish divergence, potentially signaling an end to its recent downtrend. This bullish divergence typically occurs when the coin’s price declines, the oscillator drops, but network activity rises, which has been the case for Litecoin.
According to data from Santiment, the number of unique addresses interacting with LTC surged to 704,000 over the past week per the Crypto News Flash report. In contrast, May saw a total of 345,000 active addresses, which refer to market participants engaging in successful transactions.
This significant increase in active addresses indicates that Litecoin’s network interaction in early June has already surpassed the entire activity for May, suggesting a potential upward movement in price.
Following the last occurrence of this event, LTC surged from $78.60 to $84.63 within a few days. However, the uptick in network activity isn’t the sole metric suggesting a potential rebound.
Currently, Litecoin’s 4-hour chart RSI indicates it’s nearing oversold territory, hinting at a possible price correction towards $75. Yet, bolstered by heightened network engagement, the coin’s price could see a bounce. Should this scenario unfold, a target of around $85 seems achievable.
A Look at LTC Reserve Risk
Delving deeper into Litecoin’s potential upward trend, let’s examine the Reserve Risk indicator. This metric gauges market confidence and the risk-to-reward ratio of an asset.
A high Reserve Risk signals low confidence and an unfavorable risk-to-reward scenario. Conversely, a low Reserve Risk indicates heightened confidence and a more attractive risk-to-reward ratio, per the Crypto News Flash report.
Currently, Litecoin’s Reserve Risk stands at a low reading of $0.00050, suggesting a favorable buying opportunity for LTC. The next consideration was identifying short-term price targets for Litecoin.
Analysis of liquidation levels revealed a concentration of liquidity between $80.20 and $87.65 at the time of writing. These significant liquidity zones imply potential price movement towards these levels. Furthermore, the Cumulative Liquidation Levels Delta (CLLD) was negative, indicating a market environment potentially conducive to upward price movement.
