- Litecoin’s value sees an impressive 10% rise, marking the most substantial one-day percentage growth since March 12.
- Despite this surge, several on-chain indicators, such as a drop in transactional activity and a rising NVT ratio, hint at caution in the bullish market sentiment.
In the fascinating world of cryptocurrencies, Litecoin has emerged as a strong performer, boasting a 10.07% jump in a day to trade at $91.790. This surge, the largest one-day percentage gain witnessed since March 12, has effectively boosted Litecoin’s market cap to a staggering $6.497B, constituting 0.55% of the total cryptocurrency market cap.
The Litecoin network just processed another million transactions in the last week. $LTC âš¡ pic.twitter.com/MFVMHIdsNU
— Litecoin (@litecoin) June 29, 2023
While this growth story appears promising on the surface, the past seven days have seen Litecoin oscillate in a value range of $81.6600 to $93.7100, signaling some degree of market volatility. Furthermore, it’s important to note that Litecoin still sits at a value 78.15% lower than its all-time high of $420.00 set on December 12, 2017.
Diving deeper into Litecoin’s price performance, it has managed to gain 25% since June 14 when it hit a three-month low of $72. However, this promising price surge might not be as solid as it seems, as various on-chain metrics sound a warning alarm. A considerable decline in daily transactional activity on the Litecoin network, a fall of nearly 80% compared to last month, hints at an inflated price rally driven by speculation more than economic activity.
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A similar cautionary tale comes from Litecoin’s Network Value to Transaction Volume (NVT) ratio, which has soared by 240% over the past week. A growing NVT ratio suggests that Litecoin’s price rise is outpacing the growth of its underlying transactional activity, hinting at potential instability.
As Litecoin inches closer to the $90 mark, these conflicting on-chain data trends suggest that a price correction might be on the horizon. This projected correction could potentially pull Litecoin’s value below the $80 mark before bulls regroup for another attempt at a rally.
Still, Litecoin is expected to encounter significant support around the $85 range, where approximately 437,140 investors are holding 1.6 million LTC purchased at an average price of $84.78. If this support level fails, however, bears might drive the price correction to just under $80.
While these metrics suggest caution, it’s important to remember that if Litecoin experiences a significant uptick in transactional activity, bullish sentiments could regain control, possibly pushing Litecoin’s value toward $100. Regardless, the currency’s performance, governed by intricate on-chain metrics, promises an engaging watch for investors and market spectators alike.
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