Litecoin Price Forecast: LTC fee revenue reaches a 7-month high as bullish momentum builds

The price of Litecoin is consolidating within a falling wedge pattern, with a breakout likely triggering a rally. On-chain and derivatives data paint a bullish outlook, as a spike in fee collection and bullish bets reach the highest monthly level. The technical landscape indicates a weakening of Bearish momentum, reinforcing the case for an upcoming upward move.

The price of Litecoin (LTC) is trading within a falling wedge pattern around $112.5 at the time of writing this article on Thursday, with a breakout likely to trigger a rally in the near future. On-chain activity and derivatives data support a bullish outlook, as LTC fee collection reaches a seven-month high and bullish bets hit their highest monthly level. Technical momentum suggests that the bulls could soon regain control, opening the door to a potential rally.

Growing interest in Litecoin among traders

According to data from Artemis Terminal, Litecoin's fee revenue has increased from $1,000 on Saturday to $2,100 on Monday, the highest level since January 26, indicating growing interest among traders and liquidity on the LTC chain.

The long to short ratio of LTC on Gate further supports the bullish outlook. The ratio currently stands at 1.11, the highest level in over a month, indicating that traders are betting on the asset's price to rise.

In addition to this, the hash rate of LTC has tripled in just over 18 months, indicating greater network security and increasing miner confidence in the ecosystem.

Litecoin Price Forecast: LTC Could Rally If It Breaks Above the Falling Wedge Pattern

The price of Litecoin is trading within the falling wedge pattern ( drawn by connecting multiple highs and lows with two trendlines since early August ). A breakout from this pattern generally favors the bulls. The price of LTC found support around its 100-day EMA at $106.13 on Monday and recovered 4% in the following two days. As of writing this article on Thursday, it is trading around $112.54.

If LTC breaks above the upper limit of the falling wedge pattern, it could extend the rally towards its high of August 14 at $134.29.

The Relative Strength Index (RSI) on the daily chart is at 48, approaching its neutral level of 50, indicating a weakening of bearish momentum. The Moving Average Convergence/Divergence (MACD) lines are also getting closer together with decreasing red histogram bars, suggesting that a bullish crossover could occur in the upcoming sessions.

However, if LTC faces a correction, it could extend the decline to find support around its 100-day EMA at $106.13.