Litecoin LTCUSD
The Litecoin price is struggling. The LTC has dropped to $130, which is more than 6.90% below the highest level on Monday. Its market capitalization has dropped to more than $8 billion making it the 12th biggest cryptocurrency in the world.
Why Litecoin dropped. LTC declined mostly because of the overall underperformance of Bitcoin. This is notable since Bitcoin and Litecoin are some of the most correlated digital coins. Indeed, data shows that the two have a correlation-co-efficient of almost 1. In a recent interview, Litecoin’s founder talked precisely about this close relationship, saying that many investors viewed LTC as a better version of BTC.
Litecoin price has dropped even as on-chain data shows some promising signs. For example, the network fees has dropped by 7.89% in the past seven days. This brings the total 90-day drop to 46.07%. At the same time, the daily active addresses have increased by 24% in the past 7 days while the total active accounts has risen to more than 3.49 million. Further data shows that the number of transactions has increased sharply recently, as shown below. The same is true with volume.
Therefore, looking ahead, the Litecoin price will likely react to the latest US inflation number and the Grayscale Bitcoin unlocking.
The daily chart shows that the LTC price has been in a downward trend recently. The coin is about 70% below the highest point this year. Along the way, it has formed a death cross, where the 50-day and 200-day moving averages make a bearish crossover. It also seems to be forming a bearish flag pattern that is shown in blue.
Therefore, there is a possibility that the coin will keep falling even after the encouraging on-chain data. On the flip side, a move above the upper side of the channel and a cross above $140 will invalidate the bearish view.
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