Litecoin price is seeing renewed activity around its MimbleWimble Extension Blocks (MWEB), as its price falls back after its strong increase at the beginning of September. The latest Litecoin post noted a new all-time high in terms of MWEB addresses.
At press time, Litecoin price is near $52.58, down 1.17% over the past 24 hours. Despite the short-term decline, the broader chart shows that LTC has moved significantly higher from the $44–$45 per LTC seen throughout most of August.
Also Read: Litecoin Price Gains 6% as Network Fees Stay at $0.001
MWEB Activity Hits New Heights
Litecoin’s latest social media post noted another all-time high in terms of MWEB addresses. The post stated, “Another day, another new ATH for Litecoin on MWEB addresses. Now start using it!” As seen in the image below, the MWEB balance was seen at around 563,117 LTC, with a balance value of around $29.48 million at the price shown in the post.
This appears to be a positive sign for the network despite Litecoin’s price being lower than its recent highs.
It is important to note that increased MWEB balance and activity figures are separate from the price action of LTC. With that said, the increased on-chain activity is seen as a good sign for the broader Litecoin network.
Litecoin Price Dips Lower
On the price front, Litecoin price appears to have dipped lower once again. On the TradingView chart, LTC is seen lower after breaking out higher above the $49.32 level in early September before climbing toward the $55–$56 region. LTC briefly pushed above the $58 level during the last rally.
As of the latest data, LTC is seen near $52.58, while the $49.32 level now stands out as an important support area. A successful hold above this level could keep the recent bullish structure intact, while a deeper decline could bring the next visible support near the $44.86 level.
The momentum indicators on the chart appear to be positive overall for the near-term outlook. The Moving Average Convergence Divergence (MACD), for example, is seen above the zero-line with the MACD line at 1.72 versus the signal line at 1.57.
The histogram is also positive at 0.15. This shows that while the recent rally is slowing down, there is still positive momentum for LTC to retest higher levels.
Also Read: Litecoin Price Signals Bullish Momentum After $47.63 Breakout
Litecoin Open Interest Surges Higher
Another metric that can be used to gauge the demand for Litecoin is through its open interest (OI). As per data from CoinGlass, the OI for Litecoin futures has increased substantially during the recent rally.
Litecoin’s OI was generally range-bound between the $300 million–$350 million level throughout July and most of August.
Further gains were seen in late-August and early September with OI climbing towards the $400 million and later rising above the $400 million level around September 7.
As of September 10, OI is seen near $390 million. This suggests that while lower than the recent peak, there is still demand for Litecoin as seen by the higher OI figures compared to earlier in the chart.
The surge in OI along with the price increase suggests that traders are more interested in trading LTC via derivatives as the rally gathered pace during September.
The recent drop in OI figures may also suggest that some traders are already closing positions as Litecoin price fails to move higher.
Also Read: Litecoin Price Rises 2.39% as AIBC Conference in Rome Captures Spotlight
Litecoin Volume Surges During the Price Rally
Further evidence regarding the increased market activity around Litecoin can be seen via the volume figures. As per the data from CoinGlass, volume surged substantially higher during the rally that began in early September.
Litecoin’s volume surged higher around September 6 and September 7, with the bars reaching peaks near $650 million–$680 million.
Lower volumes were then seen as LTC price dropped lower, with volumes still being higher than several other days seen in the chart. This suggests that the strongest action was seen during the breakout and price rally.
With MWEB activity hitting new ATHs and trading activity increasing during the recent rally, Litecoin could remain in focus in the coming sessions.
Traders are advised to keep an eye on the $49.32 level, while a sustained move back above the recent $55–$56 level could act as a potential trigger for another rally.
Also Read: LTC Price Could Rally Toward $47.60 as Litecoin MWEB Adoption Accelerates
This article contains market analysis and price predictions. These are not guarantees. Crypto markets are volatile. Always DYOR. Not financial advice.
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