- Summary:
- Litecoin price nosedived on Monday as demand for cryptocurrencies plunged. The LTC/USD and LTC/GBP pairs crashed.
Litecoin price nosedived on Monday as demand for cryptocurrencies plunged. The LTC/USD and LTC/GBP pairs crashed to the lowest levels since November 23. It has nosedived by more than 14% from its highest level last week, giving it a market cap of about $5.2 billion. The coin has risen by over 17% in the past seven days.
LTC active addresses retreat
Litecoin price dropped sharply amid the rising risks in the crypto industry. Data compiled by BitInfoCharts shows that the number of active addresses in the network has plunged sharply in the past few days. They have dropped to a low of 200k, which is much lower than this month’s high of over 300k. It is also significantly lower than October’s high of over 401k.
One of the most notable positives is that Litecoin’s hashrate has been in a strong upward trend in the past few months. It currently stands at 580 TH/s, which is much higher than last week’s low of 535 TH/s. A hashrate is an important number that measures the healthy of a blockchain network. It has been in a strong upward trend from the year-to-date low of 342 TH/s.
Litecoin’s plunge has coincided with that of other cryptocurrencies. For example, Bitcoin has plunged to $16,163 while Ethereum and BNB crashed to $1,168 and $293, respectively. Another worry is that there will be more revelations in the ongoing FTX crisis in the near term.
Litecoin price forecast
A common question recently is whether the LTC price will soar to $100 in the near term. Besides, the coin defied gravity this month as it rose from $47.65 to a high of $83. This recovery happened as Bitcoin remained stuck at around $16,000.
Litecoin’s recovery waned in the past few days as it crashed below the key support level at $73.27, which was the highest point on November 7. It has also moved below the 25-day and 50-day moving averages while the Relative Strength Index (RSI) has dropped below the neutral point.
The coin has also formed a descending top pattern. Therefore, Litecoin price will likely continue falling as sellers target the key support at $64.60. This is an important level since it was the highest point on November 11 and 20. A move above the resistance at $75 will invalidate the bearish view.
