Litecoin Gains 25% Against Bitcoin as Adoption and Sentiment Soar

• Litecoin surged 25% in February, with active addresses hitting 445K, signaling strong market interest and price momentum.
• Historical trends suggest a potential short-term pullback after recent gains, as past rallies led to brief corrections.
• Litecoin remains in a $96–$136 range, with key EMAs providing support. A breakout above $136 could fuel further upside.

According to Santiment data, Litecoin gained 25% against the leading cryptocurrency in February, outperforming it. This increase coincides with active addresses reaching their highest level since February 1st, surpassing 445,000. In the meantime, for the first time since February 10, good social sentiment on Litecoin doubled unfavorable mentions. Historical patterns, however, point to a potential temporary reversal.

Market Trends and Address Activity

Litecoin’s price and address activity showed a strong correlation throughout February. A sharp rise in active addresses coincided with upward price movement. Price rises were also correlated with spikes in social mood, indicating increased market interest. 

While sentiment remained erratic, Litecoin had sideways trading from February 10 to February 20. However, on February 25, address activity surged again, leading to an upward price trend. By February 28, both active addresses and sentiment reached new highs for the month.

This pattern mirrors previous trends. In late January, Litecoin’s address activity and price spiked before retracing. A similar scenario unfolded in early February, with another address activity increase followed by a price dip. These trends indicate that a short-term correction may follow the recent rally.

Price Action and Technical Indicators

According to analyst Gonzo, Litecoin’s perpetual futures contract on Binance is a range between $96 and $136. The price recently touched $130.90 before settling near $125.53. Key short-term exponential moving averages (EMAs) at $124.40, $122.40, and $121.26 provide support. Buyers are maintaining control as the price stays above these EMAs.

Despite bullish momentum, the price has struggled to break above $136. Each attempt at resistance faced strong rejections, keeping Litecoin in consolidation. Conversely, the $96 support level has consistently held, preventing a major breakdown. This trading range suggests that the market remains neutral until a decisive breakout occurs.

Potential Scenarios and Market Outlook

Parabolic SAR indicators highlight bullish momentum, with Litecoin trading above key moving averages. However, strong volatility remains evident, as long wicks appear at both extremes. The moving averages are trending upward, supporting the current structure.

A breakout above $136 would add further upside potential, which would drive Litecoin into a stronger bullish trend. A drop below $96 would be an indicator of a bear trend. However, a number of support levels around the EMAs would prevent a precipitous fall.