Journalist
Posted:
- LTC’s daily chart turned red and the market indicators were bearish.
- Most indicators pointed to a further downward trend.
Litecoin [LTC] has witnessed a massive increase in networking activity in recent times, due to a rise in its adoption and usage. Although this incident seemed optimistic at first glance, the price of the coin did not react positively.
Litecoin’s network activity remains promising
Ali, a popular crypto analyst, recently posted a tweet highlighting that Litecoin network activity has increased in the recent past.
On December 20 #Litecoin witnessed the largest increase in the number of new products $LTC address creation in more than two years! No less than 1.27 million #LTC addresses were generated in just one day. pic.twitter.com/REVeVQzwdQ
— Ali (@ali_charts) December 24, 2023
According to the tweet, on December 20, Litecoin witnessed the largest increase in the number of new LTC addresses in more than two years. This was the case because the blockchain recorded 1.27 million addresses being created in just one day.
AMBCrypto then looked at Santiment’s data, which confirmed this Litecoins The number of daily active addresses remained high over the past week, as did the number of transactions.
The speed was also faster, meaning LTC was used more frequently in transactions within this time frame.
Source: Santiment
Was LTC affected?
The increase in network usage has not had a major impact on investor behavior in the recent past. Thus, LTC liquidation levels remained relatively low.
The coin only witnessed a large number of sell-offs around $72, but the price continued to rise.
Source: Hyblock Capital
Nevertheless, growth momentum slowed as the daily chart recently turned red. According to CoinMarketCapthe LTC has fallen by more than 1% in the last 24 hours.
At the time of writing, it was trading at $71.60 with a market cap of over $5.2 billion, making it the 18th largest crypto.
To better understand what went wrong with Litecoin, AMBCrypto checked Santiment’s data. According to our analysis, after peaking on December 22, LTC’s MVRV ratio has declined slightly.
The price volatility 1w also followed a sideways path, justifying the sluggish price action. Moreover, derivatives investors actively bought LTC at the time of writing, increasing the likelihood of continued sideways price movement.
Source: Santiment
Read Litecoins [LTC] Price prediction 2023-24
To add to the misery, Litecoin’s MACD showed a clear bearish advantage in the market. The Chaikin Money Flow (CMF) also recorded a decline, meaning the possibility of a further downtrend was high.
Nevertheless, the Money Flow Index (MFI) turned bullish as it recorded a slight increase from the neutral point.
Source: TradingView