Litecoin’s price has experienced a 3% dip, trading at around $67. On the bright side, there has been a rapid increase in on-chain movement according to Santiment, with address activity and whale transactions reaching their highest levels since June.
The total cryptocurrency market has also seen a 1.5% decrease in the past 24 hours, sitting at $1.3 trillion. Bitcoin remains above $34,000 while most altcoins struggle to maintain recent gains.
Litecoin Price Outlook: What’s Next?
Despite the burst of on-chain activity, Litecoin has had difficulty surpassing the psychological barrier of $100. The recent surge in address activity and dormant Litecoin suddenly moving could be an indication of more coins circulating.
According to Santiment, the overall bullish outlook for Bitcoin suggests a potential uptick in its price, which could also benefit Litecoin. However, there is a possibility of a short-term sell-off pressure due to the movement of dormant coins. In such a scenario, a correction could cause the Litecoin price to retreat further, with bears potentially targeting key support zones in the $60-50 region.
Frequently Asked Questions (FAQ)
What is on-chain activity?
On-chain activity refers to the movement of cryptocurrencies on a blockchain network. It includes transactions, address activity, and other interactions recorded on the blockchain.
What is the significance of on-chain activity for Litecoin’s price?
On-chain activity can provide insights into the demand and usage of Litecoin. High levels of activity may indicate increased interest and potential price movements.
Why is the $100 mark a difficult hurdle for Litecoin?
The $100 mark has psychological significance and is often considered a key resistance level. Many traders and investors closely watch this level, and breaking through it can lead to further price gains.
What are key support zones?
Key support zones are price levels where there is historically strong buying interest, preventing the price from falling further. These zones act as a cushion against downward price movements.
Litecoin’s price has experienced a minor dip, but there has been a notable increase in on-chain activity. Address activity and whale transactions have reached their highest levels since June. However, the Litecoin price has struggled to surpass the $100 mark. While there is optimism surrounding Bitcoin’s outlook, a potential sell-off pressure may impact Litecoin’s price in the short term. Bears could target key support zones in the $60-50 region.