The price of Litecoin (LTC) has increased by 18% since dropping to $72 last Thursday. Despite market contractions, long-term investors are showing confidence in the cryptocurrency by increasing their bullish positions. This strong support from long-term investors is driving the ongoing price rally. But how much more can the LTC price increase before experiencing another downward correction?

Compared to Bitcoin (BTC) and Ethereum (ETH), Litecoin’s price has outperformed over the past seven days. While weak hands and short-term traders quickly exited their positions during the recent market contraction, long-term loyalists have chosen to double down on their investments in Litecoin.

Looking ahead, could the growing traction of the Litecoin network result in further price gains in the coming weeks?

Litecoin Weak Hands Flee, But Long-Term Holders Double Down

At the start of the turbulent month, nearly half of the 1.57 million LTC short-term traders closed their positions. However, on-chain data reveals that long-term loyalists have increased their bullish positions. According to the IntoTheBlock chart below, between June 1 and June 19, the percentage of addresses held by short-term holders decreased from 13.5% to 9.3%. At the same time, long-term investor addresses marginally increased from 47.70% to 48.45%.

Short-term traders refer to wallet addresses that have held their coins for less than one month. Long-term holder addresses, on the other hand, are addresses that have retained their coins for more than one year. The data shows that the number of short-term holders has decreased by nearly 50%, while long-term investor addresses have increased by about 2%.

Increased participation from long-term investors has several positive implications for price stability. Having a significant portion of network participants holding the cryptocurrency for an extended period reduces the frequency of large sell-offs and sudden price drops. This stability can attract more investors and businesses to adopt Litecoin, viewing it as a reliable store of value.

LTC Underlying Network Demand is Growing

Adding to the bullish sentiment, Litecoin has seen a notable increase in the number of users actively transacting on the network. As the LTC price jumped 18% over the past week, the number of Daily Active Users (DAU) on the network increased by 10%. The chart below demonstrates how Litecoin’s DAU (7d) rose from 2.2 million on June 15 to 2.45 million addresses recorded on June 20.

The “Active Addresses (7d)” metric represents the number of unique addresses that carry out transactions over a seven-day period. When this metric increases during a price rally, it indicates that the gains are relatively organic and not solely driven by market speculation. As a result, Litecoin holders can expect more price gains in the coming weeks. Additionally, during a price retracement, LTC is likely to find support at a higher level.

LTC Price Prediction: A Possible $100 Retest

Considering the confidence exhibited by long-term Litecoin holders and the growing network demand, it is likely that LTC will retest the $100 mark in the coming weeks. However, before that, LTC must surpass the initial resistance at $85. Around 333,360 addresses purchased 3.87 million coins at an average price of $85.94. If these investors decide to take profits, it could trigger a pullback. On the other hand, if the bullish momentum remains strong, they could increase their positions and push LTC towards the $100 price target.

If the LTC price unexpectedly drops below $75, bears could regain control. However, with 356,870 investors who bought 5.72 million LTC at a minimum price of $75.28, strong support is expected at that level. If this support level fails, LTC may decline further towards $70.