Litecoin (LTC) has recently been in bullish momentum, showing significant resilience and growth in the cryptocurrency market. As of press time, Litecoin’s price was exchanging hands at $81.81, with a substantial 24-hour trading volume of $353,415,845.
The cryptocurrency has gained 2.47% in the last 24 hours, according to real-time data from CoinMarketCap, currently ranking #19 with a live market cap of $6,095,781,423.
LTC/USD 24-hour price chart (source: CoinMarketCap)
Litecoin’s Surge in Transactions
Litecoin has observed a noteworthy increase in its transaction usage, surpassing Bitcoin in the number of payments processed through BitPay, a popular cryptocurrency payment service provider. In April, Litecoin’s transaction count nearly doubled that of Bitcoin, with 22,345 payments made using Litecoin compared to 11,635 with Bitcoin.
This surge underscores Litecoin’s growing acceptance and potential as a preferred payment solution over Bitcoin, which currently struggles with higher transaction fees and slower processing times.
BREAKING: $LTC is the #️⃣1⃣ #crypto for payments!!
The latest numbers are out.. and #Litecoin has been #1 all year, by far the leader with over 41% choosing to #PayWithLITECOIN on the world’s leading crypto payment processor @Bitpay!!! pic.twitter.com/pajOvmD3qB
— Litecoin (@litecoin) May 8, 2024
The increasing adoption of Litecoin for transactions is supported by its enhanced efficiency and lower transaction costs, making it a more attractive option for daily use. The data from BitPay highlights a pivotal shift in user preference, which could have a long-lasting impact on the demand and valuation of Litecoin in the cryptocurrency markets.
Impact on Litecoin’s Market Performance
The recent uptick in Litecoin’s usage has positively influenced its market performance. As transaction volumes continue to grow, there is a visible correlation between the increase in utility and price appreciation. This trend is reflective of the broader market sentiment, where cryptocurrencies gaining real-world applications and adoption tend to see an improvement in their market valuation.
Furthermore, the transaction surge comes when Bitcoin is experiencing a decline in its payment counts, likely due to the exorbitant fees associated with its transactions. This shift has provided Litecoin with a competitive edge, potentially positioning it as a more viable digital currency for transactions across the globe.
Technical Outlook and Projections
Litecoin’s price recovery from the $75.00 zone reflects positive market sentiment. Currently trading at $81.76, LTC has shown resilience, bouncing from a key support level of $75.71. The immediate resistance levels are noted at $84.97 and $86.41, with further resistance at $90.00 and $98.00. A significant resistance lies at $101.55, a psychological barrier and potential target for bullish traders.
The chart shows that LTC is navigating several moving averages, with the 50-period moving average trending slightly above the current price level, acting as a dynamic resistance. The convergence of the moving averages suggests a potential breakout, especially if the 50-period moving average crosses above the 100-period moving average, indicating a bullish trend reversal.
LTC/USD price chart (source: TradingView)
The trading volume for Litecoin has spiked significantly on several occasions, with substantial buying volume around the $77.10 support level, providing a solid foundation for the recent price rebound. A well-defined ascending trendline is visible, starting from the low of $75.71 and extending upwards. This trendline and the ascending price channel indicate potential resistance near the $84.62 and $86.41 levels.
If Litecoin breaks above the $84.97 resistance, it could test the $86.41 level and potentially rally towards the $90.00 and $98.00 levels, with an ultimate target of $101.55 if bullish momentum sustains. Conversely, failure to break the immediate resistance levels could see LTC retracing back to the support zone around $77.10, with a breach of this support exposing LTC to further downside, targeting the next significant support at $75.71.
