2024

Litecoin

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<ul>
 <li><em><strong>&nbsp;</strong></em><em>Litecoin saw the daily active addresses count rise spectacularly.</em></li>
 <li><em>The massive market wide bloodbath wiped out LTC’s gains from the second half of December.</em></li>
</ul>
<p><a href="https://ambcrypto.com/search/litecoin" target="_blank" rel="noopener noreferrer nofollow" data-wpel-link="internal">Litecoin [LTC]</a> has witnessed another surge in its daily active addresses. A <a href="https://x.com/santimentfeed/status/1742999787790884872?s=20" target="_blank" rel="noopener noreferrer nofollow" data-wpel-link="external">Santiment post</a> on X (formerly Twitter) highlighted this development.</p>
<p>The post noted that such a rise could lead to an increased market cap, which is another way to say that prices would appreciate.</p>
<blockquote class="twitter-tweet" data-width="550" data-dnt="true">
 <p lang="en" dir="ltr"><img src="https://s.w.org/images/core/emoji/14.0.0/72x72/1f4ca.png" alt="📊" class="wp-smiley" style="height: 1em; max-height: 1em;"> <a href="https://twitter.com/hashtag/Litecoin?src=hash&amp;ref_src=twsrc%5Etfw" data-wpel-link="external" target="_blank" rel="noopener noreferrer nofollow">#Litecoin</a>, <a href="https://twitter.com/hashtag/Maker?src=hash&amp;ref_src=twsrc%5Etfw" data-wpel-link="external" target="_blank" rel="noopener noreferrer nofollow">#Maker</a>, and <a href="https://twitter.com/hashtag/LidoDao?src=hash&amp;ref_src=twsrc%5Etfw" data-wpel-link="external" target="_blank" rel="noopener noreferrer nofollow">#LidoDao</a> are all seeing rapidly rising address activity. Typically, this gradually rising utility is accompanied by market cap growth. While <a href="https://twitter.com/search?q=%24MKR&amp;src=ctag&amp;ref_src=twsrc%5Etfw" data-wpel-link="external" target="_blank" rel="noopener noreferrer nofollow">$MKR</a> and <a href="https://twitter.com/search?q=%24LDO&amp;src=ctag&amp;ref_src=twsrc%5Etfw" data-wpel-link="external" target="_blank" rel="noopener noreferrer nofollow">$LDO</a> have seen this come to fruition, <a href="https://twitter.com/search?q=%24LTC&amp;src=ctag&amp;ref_src=twsrc%5Etfw" data-wpel-link="external" target="_blank" rel="noopener noreferrer nofollow">$LTC</a> has yet to see a similar rise. <a href="https://t.co/hOwwknnP98" data-wpel-link="external" target="_blank" rel="noopener noreferrer nofollow">https://t.co/hOwwknnP98</a> <a href="https://t.co/rbmswUrx82" data-wpel-link="external" target="_blank" rel="noopener noreferrer nofollow">pic.twitter.com/rbmswUrx82</a></p>
 <p>— Santiment (@santimentfeed) <a href="https://twitter.com/santimentfeed/status/1742999787790884872?ref_src=twsrc%5Etfw" data-wpel-link="external" target="_blank" rel="noopener noreferrer nofollow">January 4, 2024</a></p>
</blockquote>
<p><script async src="https://platform.twitter.com/widgets.js" charset="utf-8"></script></p>
<p>This is because of the increased utility of the token and the uptick in demand for it. Litecoin has seen a surge in this metric twice in December, and each was followed by a sustained rally. Could history repeat itself?</p>
<h4><strong>Examining the swell in daily active addresses&nbsp;</strong></h4>
<p>Generally, a single metric does not give a good picture of the state of the market. A combination of metrics do a better job.</p>
<p>Therefore, AMBCrypto looked at the social sentiment and the MVRV ratio alongside the active addresses.</p>
<p>Before drawing inferences from the metrics, the prior active user count spikes must be examined. The first occurred on 14th November, but this was after LTC reached a local top at the $76.8 mark.</p>
<p>The next two surges of the metric occurred on 6th December and 20th December. The former saw a 9% price increase within three days, and the latter witnessed a similar return over a week.</p>
<p>When the metric climbed again in January, it was met with a massive tumble in Litecoin prices.</p>
<div id="attachment_362255" style="width: 100%" class="wp-caption aligncenter"><a href="https://statics.ambcrypto.com/wp-content/uploads/2024/01/MD-3-Santiment-1.png" data-wpel-link="internal" rel="noopener noreferrer nofollow"><img aria-describedby="caption-attachment-362255" decoding="async" class="wp-image-362255 size-full" src="https://statics.ambcrypto.com/wp-content/uploads/2024/01/MD-3-Santiment-1.png" alt="Litecoin witnesses another surge in daily active addresses, but..." width="2560" height="867" srcset="https://statics.ambcrypto.com/wp-content/uploads/2024/01/MD-3-Santiment-1.png 2560w, https://statics.ambcrypto.com/wp-content/uploads/2024/01/MD-3-Santiment-1-300x102.png 300w, https://statics.ambcrypto.com/wp-content/uploads/2024/01/MD-3-Santiment-1-1024x347.png 1024w, https://statics.ambcrypto.com/wp-content/uploads/2024/01/MD-3-Santiment-1-768x260.png 768w, https://statics.ambcrypto.com/wp-content/uploads/2024/01/MD-3-Santiment-1-1536x520.png 1536w, https://statics.ambcrypto.com/wp-content/uploads/2024/01/MD-3-Santiment-1-2048x693.png 2048w" sizes="(max-width: 2560px) 100vw, 2560px"></a>
 <p id="caption-attachment-362255" class="wp-caption-text">Source: <a href="https://app.santiment.net/s/thmT3cq6" target="_blank" rel="noopener noreferrer nofollow" data-wpel-link="external">Santiment</a></p>
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<p>The MVRV ratio fell below 0 on 3rd January after the large price dump. The weighted sentiment has also largely been in the negative territory since mid-December.</p>
<p>This suggested a general lack of faith in the idea of a Litecoin rally. Yet, it is also possible that Litecoin prices could form a range and accumulate before pushing higher.</p>
<h4><strong>&nbsp;Where are LTC prices headed next&nbsp;</strong></h4>
<p>AMBCrypto noted this in the supply distribution by balance of addresses chart. The chart showed a strong uptrend in the balances of addresses holding less than 10k LTC.</p>
<div id="attachment_362256" style="width: 100%" class="wp-caption aligncenter"><a href="https://statics.ambcrypto.com/wp-content/uploads/2024/01/MD-3-Santiment-2.png" data-wpel-link="internal" rel="noopener noreferrer nofollow"><img aria-describedby="caption-attachment-362256" decoding="async" class="size-full wp-image-362256" src="https://statics.ambcrypto.com/wp-content/uploads/2024/01/MD-3-Santiment-2.png" alt="Litecoin witnesses another surge in daily active addresses, but..." width="3840" height="1300" srcset="https://statics.ambcrypto.com/wp-content/uploads/2024/01/MD-3-Santiment-2.png 2560w, https://statics.ambcrypto.com/wp-content/uploads/2024/01/MD-3-Santiment-2-300x102.png 300w, https://statics.ambcrypto.com/wp-content/uploads/2024/01/MD-3-Santiment-2-1024x347.png 1024w, https://statics.ambcrypto.com/wp-content/uploads/2024/01/MD-3-Santiment-2-768x260.png 768w, https://statics.ambcrypto.com/wp-content/uploads/2024/01/MD-3-Santiment-2-1536x520.png 1536w, https://statics.ambcrypto.com/wp-content/uploads/2024/01/MD-3-Santiment-2-2048x693.png 2048w" sizes="(max-width: 3840px) 100vw, 3840px"></a>
 <p id="caption-attachment-362256" class="wp-caption-text">Source: <a href="https://app.santiment.net/s/thmT3cq6" target="_blank" rel="noopener noreferrer nofollow" data-wpel-link="external">Santiment</a></p>
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<p>On the contrary, the number of addresses with 10k or greater LTC was in decline. This was an interesting finding. The downtrend has been prevalent since 2022.</p>
<p>However the August 2023 halving saw isolated periods of accumulation from January 2023 to March 2023. Another period of whale accumulation occurred in June of that year.</p>
<p>Therefore, this whale downtrend suggested that the price action of Litecoin might not be explosively bullish in the coming months.</p>
<div id="attachment_362254" style="width: 100%" class="wp-caption aligncenter"><a href="https://statics.ambcrypto.com/wp-content/uploads/2024/01/MD-3-LTC-price.png" data-wpel-link="internal" rel="noopener noreferrer nofollow"><img aria-describedby="caption-attachment-362254" decoding="async" class="wp-image-362254 size-full" src="https://statics.ambcrypto.com/wp-content/uploads/2024/01/MD-3-LTC-price.png" alt="Litecoin witnesses another surge in daily active addresses, but..." width="1940" height="976" srcset="https://statics.ambcrypto.com/wp-content/uploads/2024/01/MD-3-LTC-price.png 1940w, https://statics.ambcrypto.com/wp-content/uploads/2024/01/MD-3-LTC-price-300x151.png 300w, https://statics.ambcrypto.com/wp-content/uploads/2024/01/MD-3-LTC-price-1024x515.png 1024w, https://statics.ambcrypto.com/wp-content/uploads/2024/01/MD-3-LTC-price-768x386.png 768w, https://statics.ambcrypto.com/wp-content/uploads/2024/01/MD-3-LTC-price-1536x773.png 1536w" sizes="(max-width: 1940px) 100vw, 1940px"></a>
 <p id="caption-attachment-362254" class="wp-caption-text">Source: LTC/USDT on TradingView</p>
</div>
<p>The 12-hour price chart showed a bearish market structure after the drop below $71.41. Moreover, the H4 bullish order block (cyan box) below the $68 area has been breached. The bulls have some faint hope despite this.</p>
<p style="text-align: center;">Read <a href="https://ambcrypto.com/predictions/litecoin-price-prediction" target="_blank" rel="noopener noreferrer nofollow" data-wpel-link="internal">Litecoin’s [LTC] Price Prediction</a> 2023-24</p>
<p>The 78.6% Fibonacci retracement level saw a candlewick go to $58 but not a 12-hour trading session close below it. Until such a session close occurs on the H12 or H4 charts, the bulls could have a say in the fight.</p>

Litecoin user count grows amidst a freefall in prices – What now?

AMBCrypto

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