By Alicia Maher
Litecoin has been silent for the most part of this year. It only gets mentioned when its price loses pace in comparison to the general crypto market.
LTC Rose Surprisingly
But the coin managed a 1.3% uptick in the past week. It is predicted to trade at $54.89 for about five days to come. But it is also predicted that it will fall sharply again from its current position in a matter of weeks.
Litecoin reached its all-time high of $410.26 on the 10th of May 2021. But it has been on a path of decline since then as it lost a huge portion of its value. It is currently number 22 on the list of global cryptocurrencies by their market capitalization.
The token’s one-month gain is 1.4%. It also shows no sign of shedding its losses for its all-time high mark.
But the ecosystem so a lot of activities in the past week, unlike recent times. It would convince prospective investors to put their funds into buying the asset.
Lite rose surprisingly by 3% in the last 24 hours while it did a 1.3% rise in the past week. That development is a surprising one indeed. Especially given the fact that other assets are struggling with the prolonged bearish market.
But Litecoin has maintained its green look throughout its price chart. The exception is its Y-to-D tally which is due to the high network activity it sees.
Santiment shared a report on the 20th of October when Litecoin began to rise despite the market condition. It stated that whale transactions on the network entered $1 million.
The asset’s daily active addresses equally rose sharply, and ditto for projects on the blockchain. It indicates that there is a significantly higher interest from investors.
Impending Decline
Santiment wrote on its Twitter page that Litecoin has dominantly been under the radar this year. But whale transactions and activities on the blockchain have stepped up recently. Especially with the over $1 million worth of transactions, the timing came as the asset rose.
Such sharp network activity increases usually go well for the assets in question. But this might not be the case for Litecoin, according to analysts. They say the metrics around it show there might be a price dump looming.
The relative strength index of Litecoin on the 5th of October was 62. But it has declined to 41 in the course of the past few weeks.
The asset’s Money Flow Index is also going lower. It is settling to 41, under the 50-neutral area. The asset is equally getting overwhelmed by the selling pressure it has seen. It reflects negatively in its Chaikin Money Flow.
Therefore, even though Litecoin might rally and rise to $54.89 in a few days, there is no celebration. It is predicted to fall back to $35.40 in the next month.