- Litecoin now processing $2.85 billion in transactions over $100k daily average
- Altcoin’s price hiked by over 13% in seven days, but trend might change
Litecoin [LTC] has seen a major rise in its network activity lately, one that clearly reflects its popularity and high usage. In the meantime, the crypto’s price action also turned bullish as it registered double-digit growth. Let’s have a closer look at the Litecoin ecosystem.
A look at Litecoin’s network activity
Int0TheBlock recently shared a tweet revealing an interesting development related to the Litecoin ecosystem. According to the same, Litecoin is processing $2.85 billion in transactions over its $100k daily average. This accounts for more than 50% of the cryptos’ market capitalization.
This figure is more than most Layer 1s’s figures. For example, Dogecoin sees $590 million in large transactions, despite having roughly three times Litecoin’s market cap.
All these developments suggest that whale activity on Litecoin’s network has been considerably high.
AMBCrypto then checked Glassnode’s data to find out more about LTC’s network activity. We found that its active addresses spiked on 9 July and reached 478k. Thanks to the same, the blockchain’s daily transactions also rose during the same period.
Everything in terms of captured value also seemed pretty optimistic for the blockchain. This was the case as its fees registered an uptick on the charts.
Source: Glassnode
Litecoin bulls are back in action
While the blockchain’s network activity increased, reflecting more usage and adoption, LTC’s price action also turned bullish. In fact, the altcoin’s price hiked by more than 13% in the last 7 days. It appreciated by over 2% in the last 24 hours alone.
At the time of writing, Litecoin was trading at $70.17 with a market cap of over $5.24 billion, making it the 20th largest crypto.
We then analyzed Santiment’s data to see whether metrics hinted at a sustained price uptick. As per our analysis, LTC’s MVRV ratio increased sharply last week, which can be inferred as a bullish signal.
Additionally, the whale transaction count also rose, reflecting high whale activity. However, it was surprising to note that despite the recent price uptick, market sentiment around the coin remained bearish. This was evidenced by the drop in its weighted sentiment.
Source: Santiment
On top of that, LTC’s fear and greed index had a reading of 72% at press time, meaning that the market was in a “greed” phase. Whenever the metric hits this level, it indicates a possible price correction.
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Finally, AMBCrypto took a look at Litecoin’s liquidation heatmap to look for possible support and resistance levels.
As per our analysis, if the bull rally lasts, then LTC might soon touch $71.8. However, if the trend changes, as suggested by a few metrics, investors might see LTC dropping to $68.
Source: Hyblock Capital
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