Litecoin price forecast: 90,000 new users acquire LTC ahead of Bitcoin Halving

FXEmpire.com -

Litecoin (LTC) price opened trading on Monday, March 25 just below $90 mark, having maintained an upward momentum since the recent bullish reversal on March 20. On-chain data shows that while new entrants are trooping in to the Litecoin ecosystem, speculative traders are also placing bullish bets ahead of the forthcoming Bitcoin halving.

Can Litecoin price break above $100 before the halving date?

Litecoin pulls 90,000 new users ahead of Bitcoin Halving

Bitcoin upcoming 4th halving event scheduled for April 20 has dominated media headlines in recent weeks, as strategic investors move to front-run possible price impact.  This has triggered a paradigm shift in investment patterns across the crypto markets, predominantly on rival Proof of Work (PoW) projects.

Currently trading at $89, LTC price has been limited to only 12% gains for the month, after multiple unsuccessful attempts at establishing a steady support base above the $90.

However, on-chain data trends now show a flurry of new users have trooped into the Litecoin network ahead of the Bitcoin halving, a move that could trigger a parabolic price breakout.

Santiment’s Total Amount of Holders chart below tracks the net-growth in the number of new funded wallets created on a cryptocurrency network. It essentially measures growth in user acquisition and active investor base.

Litecoin (LTC) Total Amount of Holders vs. Price | March 2024 | Source: Santiment

The number of active Litecoin holders stood at 7.92 million at the close of Feb 29. But as of March 25, that figure has balooned to $8.01 million unique addresses holding LTC.

This means that the number of LTC holder wallets have increased by 90,000 addresses in the March 2024.

An increase in funded wallets not only means increase in number of users, but it is also a bullish indicator of fresh capital flowing into the ecosystem.

It is widely speculated that when rewards for Bitcoin mining get halved on April 20, many unprofitable miners could turn towards other PoW networks.

Hence, it appears that strategic investors have been aping-in to other prominent PoW networks like Litecoin in hopes that the forthcoming Bitcoin halving event will impact their prices and network sophistication. positively.

Litecoin (LTC) Price Forecast: Rocky road to $100

Given that LTC price action has been closely and positively correlated to the changes in the number of holders, it is highly likely that a persistent increase in funded wallets could drive Litecoin price towards $100 in the days ahead.

However, in the near-term the bulls face major resistance at the $95 area. As shown in the Coinglass chart below, $6.4 million leveraged SHORT LTC positions are due to be liquidated if Litecoin price breaks above $94.

Given that this is a high-liquidity price range, a strategic LONG traders could attempt to execute take-profit orders at minimal slippage, while SHORT traders looking to mitigate losses could also simultaneously deploy stop-loss orders.

This key factors could trigger another Litecoin price retracement from the $94 area in the week ahead.

But considering the fresh capital inflows from new entrants trooping in ahead of the Bitcoin halving, Litecoin price has a fair change of scaling that sell-wall and advancing toward $100 as predicted.

Litecoin LTC price forecast, March 2024 | Source: Coinglass

On the flipside, the broader crypto market takes another dip this week, Litecoin price stands the risk  of a reversal below $80. However, the chart above illustrates that the bulls could mount a major support buy-wall at $87 price mark to avoid liquidations worth over $7.2 million.

This article was originally posted on FX Empire

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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