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Litecoin (LTC) has seen a major increase in network activity, which may indicate a potential price rally. Recent data from Santiment shows that Litecoin had an average of approximately 704,000 unique addresses interacting on the network over the past week.
This is a significant increase from the approximately 345,000 addresses observed over the entire month of May. The more than doubling of active addresses indicates growing interest and usage of the popular cryptocurrency.
Network growth on the crypto market often precedes price increases. When more unique addresses are active, it indicates a higher number of transactions and greater overall usage. This increased activity can drive demand and push the price higher.
Additionally, when a network has a high number of active addresses it often reflects positive investor sentiment and interest in the native asset.
Is Litecoin really undervalued?
Litecoin, often referred to as the silver to Bitcoin's gold, is a peer-to-peer cryptocurrency created by Charlie Lee in 2011. While both coins share the same basic principles, LTC offers faster transaction times and a different hashing algorithm. These differences make Litecoin more suitable for smaller transactions and a viable option for everyday use.
The Relative Strength Index (RSI) of Litecoin is currently in an optimal zone for potential gains. RSI is a momentum indicator that measures the speed and change of price movements. An RSI well into the opportunity zone indicates that Litecoin is currently undervalued and may be poised for a price increase.
Currently, Litecoin is trading at $79.03 per LTC. Since the beginning of the year, the cryptocurrency has risen 8.5%, although it still lags behind Bitcoin and Ethereum in terms of price performance.