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Litecoin has gained 13% in the past week
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The network ended 2022 with record transactions
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Investors speculate further gains, although $80 is a crucial level to watch
Litecoin (LTC/USD) began 2023 on a strong footing. The cryptocurrency is among the top gainers, with a gain of nearly 13% in the week. That comes even as trading volumes rise, with an intraday 22% surge. Does this send a bullish note?
2022 may be a difficult year for all cryptocurrencies, including Litecoin. However, Litecoin saw increasing growth, with 52 million new addresses. According to Litecoin’s update on the last day of 2022, the network processed over 39 million transactions last year. This is a new record, which investors could look at to predict a bullish push in 2023.
DeFi firm Abra CEO Bill Barhydt thinks Litecoin is “important.” Barhydt says Litecoin is the only p2p decentralised payment ecosystem that has outlived 10 years of uptime. He says Litecoin is also superior to Bitcoin in terms of testing new technologies.
Digging deeper into 2023, analysts expect it to be a busy year for Litecoin. Galaxy Trading expects the token to return up to 100% heading into LTC’s halving event. The price has already been reacting to these important developments.
LTC price outlook as token retests resistance
On the daily chart, LTC is testing a resistance zone around $77-$80. The price has maintained along a short-term trendline after bouncing off from the $64 support. The MACD indicator has turned bullish and shifted above the neutral zone.
Is LTC attractive?
The gain by LTC is an opportunity for buyers to ride the bullish push in 2023. However, sustained gains in the cryptocurrency will depend on whether bulls will overcome resistance at $80. The cryptocurrency is retesting the resistance with an opportunity for a breakout. Investors can buy LTC on the breakout.
On the flip side, investors could watch how LTC behaves at the short-term trendline. A drop below the trendline could see the cryptocurrency retest the support at $64.