- LTC has declined by 3.74% over the past week.
- Despite the decline, Litecoin’s on chain activity surges with 512.8 million moving on-chain.
As an analyst with over a decade of experience in the cryptocurrency market, I have witnessed numerous market fluctuations, including bull runs and bear markets. The recent decline in Litecoin [LTC] over the past week has been a common occurrence in this volatile industry. However, the surge in on-chain activities to levels last seen in 2023 is an intriguing development that warrants closer attention.
Following a prolonged downturn, Litecoin [LTC] momentarily spiked upwards, moving beyond a falling trendline. Yet, after reaching a temporary peak at around $76, this digital currency has plummeted steeply since then.
Despite the dip on weekly charts, LTC’s on-chain activities have surged to a 17 months high.
Litecoin on-chain activities surge to 2023 levels
Based on data from IntoTheBlock, Litecoin has seen one of its busiest weeks in terms of activity over the past year.
In the past seven days, approximately 512.8 million Litecoins have been transferred within the blockchain network, representing a total value of around $36.6 billion.
These levels haven’t been seen since May 2023, averaging approximately $5 billion per day. This suggests that Litecoin remains busy with a large number of users engaging on multiple platforms.
As an analyst, I frequently observe that heightened on-chain activity often indicates a rise in user adoption for Litecoin (LTC), suggesting an escalating interest and demand for this digital currency.
What it means for LTC price charts
It appears from the information given that there’s been a significant increase in activity on the LTC chain, indicating a surge in demand for this particular altcoin. This trend suggests that the market views it positively.
Remarkably, during the last seven days, Litecoin (LTC) has experienced a downturn following a robust surge. At present, it is being traded at approximately $68.81. This represents a decrease of 3.01% over the past day. Additionally, Litecoin also showed a drop of 3.74% in its weekly performance on the altcoin market.
Prior to this, Litecoin had been on an upward trajectory hiking by 2.47% over the past month.
Although the altcoin has declined over the past week, the overall market remains positive.
For example, The Positive Momumtum Index (DMI+DI) for this market is currently at 23, higher than the Negative Momentum Index (DMI-DI) which stands at 18. This implies that the upward trend’s momentum is likely to persist.
The observed event was reinforced by a favorable Chaikin Money Flow (CMF) of 0.03, indicating increased buyer activity and suggesting that buyers continue to hold the upper hand in the market.
Glancing ahead, a MVRV ratio Z score of -0.3 indicates a favorable moment for long-term investors to purchase and stockpile. Consequently, during this downturn, potential buyers are entering the market, thereby intensifying buying demand. This increased demand could ultimately push prices upward.
As a crypto investor, I’ve noticed that the total flows of Litecoin have significantly dropped from a peak of 291.5k to zero. This indicates less activity in moving Litecoins to exchanges, suggesting a trend towards holding behavior. Consequently, it seems like investors are choosing to keep their LTC off exchanges, likely in anticipation of price growth.
Read Litecoin’s [LTC] Price Prediction 2024–2025
In simpler terms, the increase in transactions using the blockchain indicates a strong interest or demand for Litecoin. With optimistic views and a growing preference among investors, Litecoin appears poised to resume its upward trend this month.
If these conditions are met, we can expect the resistance level to be regained at around $76, a point that has been rejected several times in the past. If the trend continues negatively, the next potential support for LTC could be at approximately $63.4.
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2024-10-24 12:08