Litecoin's daily active addresses beat Bitcoin and Ethereum's, which shows a rise in network usage.
Despite beating Bitcoin and Ethereum, Litecoin's activity surge might be short-lived based on 30-day averages for all three
Litecoin is currently testing an ascending trendline and could rebound towards $100.
On the flip side, if Litecoin falls below $74.5, it could revisit the $57.6 support level.
One of the most crucial metrics of a network's strength and demand is the daily active users score.
Very recently, Litecoin made headlines after beating both Bitcoin and Ethereum in terms of daily active addresses—leading us to speculate:
If more people are using Litecoin than Bitcoin and Ethereum, could this be an indicator of a Litecoin comeback?
Early June has been a great few weeks for Litecoin, especially when it comes to on-chain metrics.
According to an 11 June tweet from the Litecoin official Twitter account, Litecoin is currently the most active blockchain in the world, after beating both Bitcoin and Ethereum in daily active addresses.
This means that more people are currently using Litecoin than Bitcoin and Ethereum.
According to data from Santiment screener as of 12 June, Litecoin has around 728,000 daily active addresses which is more than twice its value from the same time last week.
This surge has helped Litecoin beat industry giants like Bitcoin and Ethereum, which recorded 593,000 and 419,000 daily active addresses, respectively.
Litecoin versus Bitcoin and Ethereum
A closer look at the charts shows that Litecoin's spike in daily active addresses was only temporary, with Bitcoin and Ethereum having much better averages over the last 30 days.
However, could this spike have been the trigger for a Litecoin recovery/
Let’s find out from the charts below:
As it stands, Litecoin is currently trading at a critical juncture.
The cryptocurrency has been largely bullish on all timeframes and remains so at the time of writing.
Litecoin’s price
The snapshot above shows Litecoin down by around 2.54% on the daily timeframe, and by 8.64% on the weekly.
Things don’t look very good for Litecoin as shown above—But perhaps, this might be about to change.
For example, we can see that all of this bearishness has brought the cryptocurrency into a retest of the ascending trendline shown below:
Litecoin’s possible price action
Litecoin also happens to be testing resistance around $77.19 and looks poised to make a comeback from this price level to more than $100.
However, if the bears succeed in pushing Litecoin underneath $74.5, we might be seeing the so-called digital silver revisit $57.6.
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