Why Litecoin was one of the best coins to hold this week despite the downside

Disclaimer: The findings of the following evaluation are the sole opinions of the author and shouldn’t be thought of funding recommendation.

  • Litecoin continues to be holding on above June lows despite latest crash
  • The altcoin supplied profit-making alternatives this week

If you held Litecoin (LTC) since October, chances are high that you just felt much less of a ache from its bearish efficiency this week than most different cryptocurrencies. This is as a result of LTC’s crash this week solely undid the positive aspects it achieved since the finish of September.

Read Litecoin’s value prediction for 2023-2024

Unlike most different prime currencies, Litecoin’s downside solely resulted in a slight drop beneath September and October assist ranges. In different phrases, it’s press time value stage nonetheless traded above its June lows. The similar can’t be stated for a lot of prime cryptocurrencies together with Bitcoin.

LTC’s capacity to resist extra downside is already a wholesome signal for merchants and traders. In addition, it pulled off a 6% upside in the final 24 hours at press time, confirming noteworthy bullish demand.

Source: TradingView

The proven fact that Litecoin’s cash stream managed to keep above October lows will be interpreted as an indication of relative energy. Now the query is whether or not we are going to see LTC regain the earlier bullish momentum we noticed in the final week of October.

Can Litecoin bulls regain their momentum?

Litecoin did kick off November with an try at a liveliness pivot. Unfortunately, it reverted to extra downside courtesy of this week’s market crash. We additionally noticed a velocity drop earlier in the week but it surely may be about to pivot in favor of the upside as soon as once more.

Litecoin metrics

Source: Glassnode

Its realized market cap, at press time, was at $6.69 billion, which suggests there was loads of holdings that entered beneath its present value level. This is an indication that loads of traders are both holding or are unwilling to promote, maybe for a long-term focus.

Litecoin’s upside in the final 24 hours is a affirmation of sturdy demand close to its present weekly low. The excellent news is that the upside was backed by substantial whale exercise as indicated by the elevated whale transaction rely.

Litecoin whale transaction count

Source: Santiment

Can Litecoin maintain sufficient demand to return to its latest highs? Well, it can require a robust bullish sentiment to obtain this. Fortunately, there are some latest developments that will encourage and keep a constructive sentiment shift.

A superb instance is the sturdy rise in mining issue that was noticed in the previous couple of months. This is vital as a result of it underscores a wholesome mining ecosystem for Litecoin, whereas sustaining decentralization.

Furthermore, Litecoin maintained a robust progress tempo for brand new addresses. Its new addresses progress ratio outpaced that of Bitcoin and Ethereum from January to October this 12 months.

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