Litecoin Price Outlook Amid Bearish On-Chain Metrics

Litecoin price has been underneath intense strain over the previous weeks, hovering round its lowest degree this yr on the again of poor on-chain metrics and a boring market. The LTC worth has dipped by 5.55% prior to now week and 33% prior to now three months. Moreover, the asset has crashed by 12% within the yr so far however stays 22% increased prior to now yr. Litecoin has a complete market capitalization of $4.5 billion, rating it 15^th after Polkadot.

What’s Taking place with LTC?

Litecoin worth has been on a powerful bearish trajectory since its profitable third halving occasion accomplished in early August. The digital asset has fallen off crypto buyers’ radar since then primarily as a result of worth dip it skilled after heavy profit-taking from buyers who had invested in Litecoin main as much as the worth surge triggered by market expectations across the halving occasion.

On-chain information reveals that the each day transaction numbers for Litecoin have been on a constant decline for the reason that halving occasion in August. In accordance with BitInfoCharts, the variety of each day LTC transactions has decreased from over 584,000 in Might to 104,000 transactions in October. This implies the shortage of curiosity from buyers, prompting a decline in threat urge for food.

Litecoin, the silver to Bitcoin’s gold, has at all times had a excessive correlation with Bitcoin, making it weak to volatility within the lead cryptocurrency. Past its correlation with Bitcoin and broader market cues, the altcoin is weak to a worth decline owing to the inactivity of its whale addresses. Regardless of the whale addresses controlling about 11% of the complete circulating provide, their shopping for and promoting exercise triggers the market.

Even so, information from Coinmarketcap reveals an enchancment within the asset’s each day transaction volumes. On the time of writing, the entire quantity of LTC traded prior to now 24 hours climbed by practically 14%, pointing to the potential of a worth reversal.

Litecoin Worth Technical Evaluation

The each day chart reveals that the Litecoin worth has been range-bound for the previous few days, buying and selling between the tight vary of $61 and $65. The altcoin has dropped by greater than 45% from its highest degree since this yr of $114 seen in July. Litecoin has didn’t get better above the essential degree of $72.65 for the reason that halving occasion.

LTC stays under the 50-day and 200-day exponential shifting averages, in addition to the 50-day and 100-day easy shifting averages. Its Relative Power Index has dropped under the sign line, suggesting a rise in promoting strain. The Transferring Common Convergence Divergence (MACD) indicator is signaling a ‘sturdy promote’.

As such, the Litecoin worth is more likely to proceed falling within the ensuing periods as bears eye the instant and essential help degree at $60. A drop under this degree might push the worth decrease to this yr’s low of $56. Alternatively, a breach above the 50-day EMA at $65.90 might provoke a worth reversal, resulting in subsequent positive aspects to $72.65 and $84.