On-Chain LTC Activity Shows Altcoin Prepares For A Breakout

The on-chain LTC activity shows that Litecoin is preparing for another breakout as it is resurging amidst the broader bull run on the market. The fundamental sentiment is growing especially as the date for the MimbleWimble implementation is coming soon so let’s see more about it in the latest Litecoin news today.

Litecoin Network Activity Continues to Rise as Markets Prepare to Breakout. $ltchttps://t.co/k3YZ6E5x3z

— Litecoin.com (@LitecoinDotCom) August 16, 2020

The founder of the Litecoin Foundation Franklyn Richards said in a tweet that the on-chain LTC activity is continuing to rise as the crypto market prepares for a breakout. Richards stated that Litecoin will see an upper bound value of $61 and the lower one of $31. The cryptocurrency traded at $46 at the time of writing and the predictions were made using a trend analysis from the on-chain data:

#Litecoin had 92,278 active wallets the past 24 hrs. More than #BCH and #BSV combined (90,446).

— David Schwartz (aka – Dasch) (@DaddyCool1991) August 6, 2020

 “This ratio is roughly 600 Txs: 1 USD with an acceptable error drop off of around +-30 percent. Yes, that is a significant value but in relation to volatility, this would put the current Litecoin upper and lower bounds at $61 and $33 respectively.”

With the price now over $61 and the resistance set at $65, Richards is confident about another solid breakout to the upside. The recent market conditions which saw Bitcoin and Ethereum increase by about 30 percent will help propel this sentiment. He said that the price ratio which pegs the prices based on the transactions is now undervaluing the network. The daily network transactions increased from 20,000 per day to 45,000 per day which is a huge increase giving the lower, middle, and upper bounds of $52.5. He noted:

 “We have not seen sustained network usage at this level since the beginning of 2018, the main difference being back then price was incredibly over valued according to TX:Price ratio, likely indicating that the network has adequately matured 3 years on to hold these prices.”

The transactions cab ne pushed higher which will indicate a flawed metrics. However, as the activity on the network has been growing at a steady rate, there’s no imminent cause for concern. He finished saying that Litecoin faces two major resistances at $81 and $140 and LTC is now on track to revisit the triple digits if the market remains steady. The much-awaited MimleWimble implementation that saw an increase in transactional scalability and privacy, remains on track for September. As it was previously reported, the lead developer David Burkett said that the team made a few design changes and cleaned up the code to create an end product with the highest quality.