Updated on January 16, 2023 08:42 AM
Litecoin dubbed the "digital silver" of the cryptocurrency realm, has once again rewarded its loyal investors and holders. It staged a remarkable comeback after hitting rock bottom at $60.
According to statistics from the on-chain analytics firm Santiment, Litecoin has been steadily increasing since the number of these huge addresses began to increase. The crucial indication here is "Litecoin Supply Distribution," which informs us how many addresses (or holders) are currently in the market for each wallet category.
Addresses are assigned to these wallet groups depending on the total quantity of coins they presently own. For example, the 1-10 litecoin band comprises all addresses that currently possess between 1 and 10 LTC. The Supply Distribution statistic for this band would then calculate the total number of such addresses now available in the market.
Those possessing at least 1,000 LTC are now the wallet groups of interest in the present conversation. Because there is no upper limit, all balances from this amount to infinity are piled together.
As seen in the graph above, the value of the indicator for Litecoin addresses within this range has been increasing since May of this year. Holders with 1,000 or more coins in their wallets are known as sharks and whales, and this upward trend suggests that the overall number of these major investors has increased in recent months.
The address count of these holders recently reached 4,232, the highest amount recorded in more than two years. The graphic also shows that, while the number of sharks and whales has increased (and so accumulation has occurred), the LTC/BTC ratio has increased by more than 130%.
Related Read: Crypto Expert Michaël Poppe Predicts an Upcoming Litecoin Rally
At the time of writing, the price of Litecoin is $66.26 USD, with a 24-hour trading volume of $383,413,250 USD. In the last 24 hours, Litecoin has dropped 1.89%. LTC is currently ranked 14 on CoinMarketCap, with a market cap of $4,766,379,482 USD. It has a maximum quantity of 84,000,000 LTC coins and a circulating supply of 71,933,842 LTC coins.
Also Read: How does Litecoin work?
Overall, the 4-hour Litecoin price analysis indicates a sell signal, with 14 of the 26 significant technical indicators pointing in that direction. Three of the indications, on the other hand, favour the bulls, who have been active in recent hours. Simultaneously, nine indicators are neutral and favour neither side of the market.
As the coin trades around the $68.00 support level, the Bollinger Bands are contracting. At the time of publication, the indicator's bottom line provides support at $65.53, while the upper limit represents a resistance level at $71.93.
Yesterday, the RSI briefly jumped to the overbought zone before swiftly returning to the neutral range where it now trades. The index is now trading at 34.16 units, with a small negative slope. The indicator does not show any signal, and the low slope indicates that the market’s negative pressure is modest.
The MACD is now bearish, as indicated by the histogram's red colour. Furthermore, the indicator has minimal bullish momentum, as seen by the histogram's low height. Furthermore, the deeper shade of the signal indicates that the bullish momentum is expanding across the timeframe as the price goes below $68.00.
The 24-hour Litecoin price analysis confirms this feeling and provides a sell signal, with 13 indications indicating a downward trend and only four indicating an upward movement. The study reveals negative dominance on the mid-term charts, while the asset is under pressure during the same period. Meanwhile, nine indicators remain neutral and do not provide any indications at the time of publication.
As the coin trades around the $68.00 support level, the Bollinger Bands are contracting. At the time of publication, the indicator's bottom line provides support at $58.53, while the upper limit represents a resistance level of $78.93.
The RSI is at 42 and intersects with the semi-line(Yellow) and diving below it. This move shows that the price may move downward as sellers are more than buyers at the moment.
The MACD is negative on the 24-hour chart as well, as demonstrated by the red colour of the histogram. Furthermore, the indicator shows little bullish momentum, as seen by the low height of the histogram.
The maximum number of tokens for Bitcoin and Litecoin is both capped at 21 million for Bitcoin and 84 million for Litecoin. Litecoin's network has more liquidity than Bitcoin's since there are four times as many tokens available. Bitcoin's rarity, however, increases its value.
There are no hard and fast rules when it comes to cryptocurrency. Therefore, even if Litecoin appears to be a potential investment vehicle, there is no assurance that it will make you wealthy. But if you play your cards well and know what you're doing, you may stand to gain significantly.
Litecoin does, in fact, have a bright future in the cryptocurrency industry if you believe the majority of the experts. Despite not ranking among the top 10 most traded or popular cryptocurrencies, it is universally accepted and simple to trade.
Therefore, according to Trader's Union, the network's market cap must reach $74 billion for LTC to cost $1,000 within the next five years. Accurately making such forecasts is challenging, though. Because of the erratic nature of cryptocurrencies, it is impossible to gauge investor enthusiasm. However, we may take into account elements like supply and past price movements.
Due to its higher supply and lesser demand compared to other cryptocurrencies, Litecoin has a lower LTC/USD exchange rate and weaker buying power. This is primarily because from the investor's and consumer's point of view, an exchange is more valuable if it can purchase more.
Disclaimer: This article is solely the opinion of the author and shouldn't be taken as a piece of investment advice.
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