- Litecoin bears are experiencing friction along the ascending support line.
- State of uncertainty casts doubt on Litecoin’s next move.
Litecoin has been getting a lot of attention lately for two main reasons. The first is the LTC20 standard which has led to increased address activity. The second major reason is the hype surrounding the upcoming halving that is reportedly set to take place in August.
Read the Litecoin price forecast for 2023-2024
So far, the aforementioned factors have contributed to Litecoin’s visibility, a situation that has also supported the price action. Thus, the price of LTC has maintained resilience against the downtrend for the past five days.
This is contrary to the performance of the top cryptocurrencies, which continued to fall.
Will Litecoin Maintain Its Downside Resistance? At some point, the hype that has been amplifying LTC bulls over the past few days will run its course.
However, this is not the only reason why the cryptocurrency has maintained its upside. The price action is trading at a long-term support level where investors are likely to avoid selling. Litecoin was holding at the price level of $80.95 at the time of writing.
Source: TradingView
While Litecoin’s current support seems to be holding up well, the halving is still more than two months away. This is enough time for the current momentum to run out. In other words, there is still a significant chance of a push under support.
Is Litecoin Losing Its Bullish Momentum?
Litecoin transaction volume currently indicates an increase in trading activity over the past two days. Nevertheless, the recently perceived excitement is notably waning, as evidenced by the slowdown in daily active addresses.
Source: Sentiment
The slowing pace of daily active addresses suggests that Litecoin could pave the way for more price weakness. Therefore, it is important to assess what the whales are doing. So far, the delivery distribution shows some accumulation activity from addresses in the range of 1,000 to 100,000 LTC.
Source: Sentiment
Higher whale categories remain relatively dormant. These findings may indicate that the market is currently awaiting directional clarity.
Prospects of Litecoin potentially reclaiming the $100 price level are high, mainly due to rising expectations ahead of the halving. On the network side, Litecoin is ideally positioned to take advantage of increased network activity.
Is your wallet green? Check out the Litecoin Profit Calculator
Scaling may be the least of its concerns, as is the case with Ethereum amid the latest surge in on-chain activity. This is because Litecoin uses the Lightning network, the same network that enables scaling on the blockchain network.
The lightning network helps blockchains with scalability issues.
This layer 2 solution allows individuals to transact without having to record each transaction on-chain.
And it’s not exclusive to #Bitcoin! Other cryptocurrencies such as Litecoin have also integrated it. pic.twitter.com/vPF1LEjPn7
— Binance (@binance) May 14, 2023
