Litecoin eyes gains above $70 amid broader market surge

Litecoin (LTC) price recently bounced above $70 after rallying from lows of $57 reached on July 5 when a broader market downturn also saw Bitcoin dump to under $54k.

This week finds BTC hovering above $63,000, with a broader uptick in crypto prices also seeing TC jump above the $71 level. However, while most of the top altcoins posted decent gains of between 5-7%, Litecoin appears to struggle in the past 24 hours.

LTC price chart. Source: TradingView

LTC bulls might nonetheless see prices hold above the $70 mark and allow for a retest of the $75-$80 zone. The last time Litecoin traded near the psychological $100 level was in mid-May.

Trump related sentiment buoys crypto

It’s notable that upward moves for Bitcoin, Ethereum and tokens such as Notcoin have come as investors react sharply to the attempted assassination of former US President Donald Trump.

The shooting incident on Saturday in Pennsylvania had Elon Musk among other prominent personalities openly endorse Trump for the coming election. Indeed, marketplace metric suggests odds of his victory have increased significantly following the events on Saturday.

As crypto shares in similar sentiments, the reflection is in prices of Bitcoin, top altcoins and Trump related meme coins such as MAGA.

Can Litecoin ride this outlook to rebound to $100?

The Relative Strength Index (RSI) for Litecoin (LTC) on the daily chart has risen to the 50-point mark. This is a significant increase from the 26-point level recorded earlier this month, suggesting a notable shift in momentum towards the buy side.

This upward movement in RSI indicates growing bullish sentiment among traders, which could potentially lead to further price appreciation if the trend continues.

Additionally, data reveals that trading volume has increased by 5% in the past 24 hours, reaching $264 million. While this figure is lower compared to some of Litecoin’s peers, it is noteworthy that Litecoin has recently outperformed its market cap in terms of total transaction volume.

This performance indicates a robust transactional activity relative to its size, which is a positive sign for the cryptocurrency.

On July 12, IntoTheBlock highlighted a key metric for Litecoin, showcasing the cryptocurrency’s efficiency in processing large volume transactions. According to on-chain data, Litecoin handles more high-value transactions than Dogecoin.

Specifically, Litecoin processes an average of $2.85 billion in transactions of over $100,000. This metric underscores Litecoin’s utility and attractiveness for significant financial transfers, distinguishing it from other cryptocurrencies that may not handle large transactions as effectively.

The increase in both RSI and trading volume, along with Litecoin’s strong performance in large transaction processing, paints a positive picture for its potential growth and stability in the cryptocurrency market.

This combination of factors suggests that Litecoin is gaining traction and could continue to see increased adoption and investment.

Litecoin processes $2.85 billion in transactions over $100k daily (avg), over 50% of its market cap.

📊 This is more than most Layer 1s. For example, Dogecoin sees $590 million in large transactions, despite having roughly 3x Litecoin’s market cap.

🐋 This suggests significant… pic.twitter.com/YpPKIsEMuO

— IntoTheBlock (@intotheblock) July 12, 2024

The above daily average for Litecoin is more than 50% of the LTC market cap that currently sits at $5.2 billion, IntoTheBlock analysts noted.

It’s a number that beats most Layer-1 networks and is an indicator of substantial whale activity. A spike in such a metric alongside potential upside catalysts for Bitcoin and the broader market may see bulls target more gains in Q4 and beyond.

In the short term, the key price level to watch on the downside is $60.

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