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Over the last week, most of the market’s leading currencies have seen a strong gain. In the weekly time window, two of the most renowned alts, Litecoin and Chainlink, were able to fetch 14.3 percent and 8.28 percent of their HODLers, respectively. In fact, at the time of publication, their press time valuations were $175.65 and $26.83, respectively.
There has been a lot going on on both of these networks recently. To begin, Chainlink Oracles became live on Arbitrum One, an ETH L2 scaling solution, just a few days ago. Arbitrum would now be able to support various denomination Chainlink price feeds as a result of the integration. Furthermore, new price pairs are anticipated to be supported in the next days.
Earlier this month, CoinShares Co. rolled out a new Litecoin ETP (a physically backed cryptocurrency exchange-traded-product). At launch, each unit of the the Litecoin ETP was backed by 0.2 LTC, thus providing investors passive exposure to the alt.
Development activities aside, is this the right time for traders to re-enter the LTC and LINK market?
What the on-chain metrics say
During the initial week of July, Litecoin’s volume typically hovered around the 1 billion mark. However, the same increased two-fold over the past few days and explicitly stood at 2.34 billion at the time of writing. LINK’s volume too, for that matter, was on the rise and was oscillating around the 1 billion mark at the time of writing.
Since last week, the total number of LTC transactions has been steadily increasing. It was at its one-month high at the time of this writing (164k LTC transactions). Surprisingly, Chainlink has remained quite stable around 6k.
The average balance held by market participants has also increased for both alts. This effectively meant that traders and investors were stockpiling them at this point in order to reap the benefits in the near future. At the time, the majority of the aforementioned metrics support the alts’ optimistic approach.
Key levels to keep an eye on
Improved volumes have, for the most part, kept both alts rallying. However, at this point, their prices are up against a couple of resistance levels, which could stymie their short-term performance.
As observed in the accompanying chart, LTC’s price was progressively approaching its 200 day SMA. During the latter half of May and the early days of June, the same served as a support. However, it quickly transformed into a powerful opposition. The rise from the current $175 level to the $192-$193 range should be quite smooth, which traders can take advantage of.
However, the price of LTC is likely to settle around its 200-day simple moving average before continuing its surge to the $209 level.
LINK’s price chart remained comparatively bullish at the time of writing.In fact, it was trading just above the $26 barrier level. A breakout from here would see the alt smash the $32.2 mark, and if buying pressure continues to build, LINK might test the $38-$39 zone right away.
Keeping current trends in mind, market participants should expect to earn quickly from these two alts in the next days.