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- Despite high network activity, the value of LTC has declined by about 15% in the past 30 days.
- Most indicators and gauges pointed to continued declines in prices.
Litecoin [LTC] The cryptocurrency failed to generate profits for investors as it continued to fall in the list of top 30 cryptocurrencies. However, the coin has managed to outperform on a certain front.
In fact, Litecoin outperformed both. Bitcoin [BTC] And Ethereum [ETH]which seemed very optimistic about the future of blockchain.
Litecoin outperforms Bitcoin and Ethereum
Litecoin recently published tweet Pointing out an interesting development. According to the tweet, LTC continues to dominate BTC and ETH in terms of native active addresses.
This closely points to the high adoption rate of LTC and high network usage over the past months.
In fact, AMBCrypto’s analysis of Santiment data also revealed a similar picture. Litecoin’s daily active addresses have remained high for the past 30 days, surpassing 858k on June 6.
Source: Santiment
LTC bulls take the back seat
Although the blockchain network activity and usage have been commendable, the same cannot be said about LTC’s price action. Data It revealed that the price of LTC has fallen by approximately 15% in the last 30 days.
At the time of writing, LTC is trading at $70.61 with a market cap of over $5.27 billion, making it the 22nd largest cryptocurrency by volume.
Things could get worse for LTC in the coming days as one of the key metrics points to a price correction.
AMBCrypto’s look at Glassnode data clearly reveals an increase in the coin’s NVT ratio. Typically, a higher metric indicates that the asset is overvalued, increasing the chances of a price drop in the following days or weeks.
For starters, the NVT ratio is calculated by dividing market cap by on-chain transfer volume, measured in USD.
Source: Glassnode
To see if the bears would continue to dominate, AMBCrypto then analyzed Litecoin’s daily chart. We found that most market indicators were in favor of sellers.
For example, the MACD indicator showed a bearish feature in the market. The Chaikin Money Flow (CMF) recorded a decline and headed towards the neutral mark.
A similar downward trend is also seen on the Relative Strength Index (RSI) chart, indicating that prices will continue to fall.
However, LTC price has touched the lower bound of the Bollinger Bands indicator, indicating a possible recovery soon.
Source: Trading View
Realistic or not, up to you LTC Market Cap in BTC
Our analysis of Hyblock Capital data revealed that if the price decline continues, investors could see LTC fall to $67 in the coming days.
However, in case the trend reverses, LTC may first look to $81.4 to start a full recovery.
Source: Hyblock Capital
