Over the past few weeks, the price of Litecoin (LTC) has risen from $68 to $100. However, soon after this, the cryptocurrency rate corrected, returning to $95. Using on-chain metrics and technical indicators, we figure out whether LTC has a chance to continue growing.
Litecoin Investors Take the Initiative
Fluctuations in the price of Litecoin led to the fact that about 351 thousand addresses that bought 3.96 million coins at a price of $94-101 were in limbo. They are not taking any action at this time, but may exit positions entirely or partially as they approach break-even.
However, LTC will receive significant support from medium- and long-term holders, who account for the majority of the supply. Over the past 3 days, addresses that hold the asset for 1-12 months have added almost 2 million tokens worth about $190 million. This suggests that most investors are confident in the positive dynamics of Litecoin and are ready to wait for the price to recover.
LTC Price Prediction: Can $100 Turn into Support
If the above conditions support a renewed rally, LTC price could bounce off the $94 mark and develop bullish momentum towards $104. Turning this level into support will push Litecoin even higher. However, a failed breakout attempt and a fall below $90 will invalidate the bullish thesis.
However, metrics such as the number of transactions and the number of addresses have remained stable over the past 10 days. This could mean that Litecoin’s recent rise is due to an overall trend rather than investors betting on its fundamentals, and could hint at a correction to come.
About Litecoin LTC
Litecoin (LTC) is a decentralized peer-to-peer cryptocurrency with a public code, operating on the blockchain of the same name. It is a fork of Bitcoin and was created as a virtual architecture that solves the problems of the first digital coin, and not a competitor to the “legendary” Bitcoin.
Charles Lee, a programmer from Google (who also worked successfully at Coinbase) and the founding father of the Litecoin cryptocurrency (the second fork of Bitcoin after Namecoin), presented his project on October 13, 2011. A year and a half later, there was a dizzying increase in the value of the token, followed by a deep correction. Then investor confidence in the token increased again, which was immediately reflected in the price increase. Moreover, the fall of 2017 was marked by the release of version 0.14.2 with improved security and platform performance.
