- Litecoin is underperforming by recent bullish metrics as some whales secure exit liquidity.
- Litecoin reaches a new historic hash rate as miners adapt to the spike in transactions and profitability.
Bitcoin [LTC] Maximalists hoping for a recovery during the latest rally are somewhat disappointed. October is almost coming to an end after an impressive two weeks, but LTC has underperformed.
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Like most top cryptocurrencies, Litecoin entered a low liquidity zone between August and October. Short-term support and resistance formed the basis for the same zone.
Most of the top cryptocurrencies managed to break out of that zone in the past two weeks as bullish momentum made a comeback. However, Litecoin mainly struggled to break out of the same range even as it made some gains.
Source: TradingView
The LTC bulls stalled in the short-term resistance range and have even rebounded slightly since the recent peak. Speaking of which, the price managed to rise to $72.85 after a 21% increase from the current October lows.
Are whales holding back the LTC bulls?
The above observation suggests that demand for Litecoin was not quite at the level of most of its top rivals. A quick look at the supply distribution reveals a possible reason for this outcome.
It turns out that the LTC top whales have suppressed the bulls by contributing a significant amount of selling pressure during the bullish phase. As a result, some demand was weakened.
Source: Santiment
Addresses with between 100,000 and 10 million LTC (red and yellow) have had part of their holdings waived. These whales currently control approximately 45% of the circulating supply of LTC.
In the meantime, addresses with between 1,000 and 100,000 LTC have bought the dip.
The bullish hype we have seen over the past two weeks is now dissipating. This is evident from Litecoin’s daily active addresses, which peaked on October 26 and have since fallen back to the normal monthly range.
Source: Santiment
Despite the end of the peak, the amount of LTC hoddle remains high. This is indicated by the average coin age, which recently hit a new four-week high.
Litecoin hash rate hits new monthly high
Litecoin bulls may have failed to put together a strong run, but the network still managed to score a win elsewhere. It turns out that the latest bullish phase has caused Litecoin’s hash rate to rise to a new all-time high.
BREAKING: Litecoin hashrate reached a new ALL TIME HIGH today at over 1.1 PH/s!
pic.twitter.com/hyh8g8zDsn
— Litecoin (@litecoin) October 27, 2023
Read more about Litecoin price prediction for 2024
The rising Litecoin hash rate was mainly due to the fact that the bullish outcome meant there were more transactions, and therefore higher miner profitability.
This may have stimulated miner participation and underlines the network’s ability to adapt to dynamic supply and demand conditions in the market.
