Litecoin [LTC] has shown commendable performance in the last few weeks in terms of network usage. The hike in usage clearly meant that the coin’s adoption was also on the rise.
However, this did not correspond with the coin’s price action, as it only moved marginally over the last month.
Is Litecoin’s network growing?
As per the latest data, the year 2024 has been good so far for Litecoin as its network activity increased. Litecoin’s transaction count by size was quite evenly spread over transactions, from $1 to $1000.
In fact, since the beginning of 2024, the blockchain has already processed more than 20 million transactions, which is a commendable figure.
Though at first sight this might look optimistic, AMBCrypto’s analysis of Santiment data revealed a different story. The analysis revealed that the blockchain’s daily active addresses dropped sharply over the last 30 days.
Similarly, its velocity also plummeted, meaning that LTC was used in transactions less often within a set time frame. These two metrics suggested that, despite having a high transaction count, the blockchain’s network activity actually declined over the last month.
Litecoin investors are not happy
While the blockchain’s network activity gave mixed signals, LTC’s price action remained sluggish. This was evident from the fact that the price rose by only over 1% in the last 30 days.
According to CoinMarketCap, at the time of writing, LTC was trading at $70.29 with a market capitalization of over $5.2 billion, making it the 20th largest crypto.
Our analysis of Santiment’s data revealed that Litecoin’s social volume remained relatively low through the last month, reflecting a drop in its popularity.
Apart from that, bearish sentiment around the coin also increased over the last few days as its weighted sentiment graph dropped.
Since social sentiment was negative, AMBCrypto planned to check Litecoin’s daily chart to find out what investors should expect from the coin. As per the analysis, things were looking pretty bearish as most market indicators supported the sellers.
For instance, both Litecoin’s Relative Strength Index (RSI) and Money Flow Index (MFI) registered downticks, hinting at a price decline in the coming days.
Additionally, its Bollinger bands pointed out that the coin’s price was in a less volatile zone, further suggesting that the chances of an unprecedented price uptick were unlikely.
Source : AMBCrypto by Dipayan Mitra / Feb 17, 2024