Key Takeaways:
- Multiple bullish cues helped Litecoin defy the general crypto market trend.
- Meanwhile, LTC price rose over 21% in a week.
NEW DELHI (CoinChapter.com) — Litecoin, often deemed “silver to Bitcoin’s digital gold,” defied wider market trends over the past seven days, with LTC price painting continuous green candles on the daily chart.
Moreover, Litecoin’s recent rally attracted more buyers to the market. On-chain analysis platform IntoTheBlock reported a rise in the number of active addresses and new addresses on the Litecoin blockchain.
Lack of vigor in the wider market likely made LTC’s rally more attractive to market participants. In a June 19 tweet, IntoTheBlock noted Litecoin’s daily active addresses rose by 28% WTD while new addresses spiked by nearly 55% in the same period.
Furthermore, LTC whales have been accumulating, states crypto market data provider Santiment.
Since early June 2023, addresses containing 1,000 to 1 million LTC have steadily grown. Whale transactions can often indicate the market sentiment for an asset. As such, retail investors might view LTC as a long-term investment, increasing the number of hodlers.
On-chain metrics underscore the tremendous interest that Litecoin is generating. Furthermore, remaining out of the list of tokens the SEC labeled as securities also helped Litecoin’s cause.
Halving Might Be Another Bullish Cue For LTC Price
Meanwhile, a halving event for the Litecoin token will happen on Aug 2, 2023, marking the third halving of the LTC block subsidy. In detail, halving refers to a planned reduction in LTC rewards for miners. Halving events help keep a token’s inflation in check.
Litecoin halves its miner rewards after every 840,000 blocks. The upcoming halving would cut LTC mining rewards from the current 12.5 LTC to 6.25 LTC.
Historically, traders have viewed halving events as bullish cues since halving essentially reduces the supply of the token without impacting the demand. Therefore, it seems likely that buyers will enter the market soon to capitalize on the price rally following the upcoming event.
Additionally, on June 17, Litecoin surpassed Ethereum in terms of total addresses. At the time, Litecoin had a total of 200 million total addresses, compared to Ethereum’s 181 million.
LTC Price Rallies 21% In Under Seven Days
LTC price rally saw the token rally by more than 21% from June 15’s low of $72. Furthermore, on June 21, the Litecoin token price recorded its highest intraday gains since late March 2023, spiking 9.2% to form a daily high near $87.37.
However, bears near the token’s 100-day EMA (blue wave) defended the resistance level near $86 aggressively, forcing LTC price to pare gains later in the day. Bulls must break and consolidate above the immediate resistance level before LTC price challenges the resistance near $92.
Conversely, failure in the ongoing trend could push the Litecoin token price to its 20-day EMA (red wave) support near $81.8. Moreover, breaching the immediate support level could result in LTC price falling to test support near $78.6 before recovering.
The RSI for LTC remained neutral, with a value of 54.11 on the daily charts.
Frequently Asked Questions
Litecoin halving is projected to occur on Aug 2, 2023, around 21:17 PM.
Litecoin halving is an event in which the blockchain platform halves the rewards that miners earn for mining each block.
Litecoin’s recent rally attracted more buyers to the market. On-chain analysis platform IntoTheBlock reported a rise in the number of active addresses and new addresses on the Litecoin blockchain.
