Litecoin Market Analysis: The number of non-zero LTC wallets exploded in the recent week

LTC/USD regained ground above $40.00, though the recovery is capped by $42.00.
The number of Litecoin wallets with non0zero balance increased by over 300k.

Tanya Abrosimova Independent Analyst

Litecoin is the seventh largest digital asset with the current market value of $2.6 billion and an average daily trading volume of $1.3 billion. The coin hit the recent low of $39.44 on June 27 and recovered above $40.00 by the time of writing. LTC/USD has barely changed both on a day-to-day basis and since the beginning of the day amid slow market activity.

Over 300k new Litecoin wallets with non-zero balance have been created during the previous week, according to the data, provided by Litecoin Foundation.

There have been 307,603 new non-zero #Litecoin wallet addresses created in the past 7 days. That is an average of 43,943 new addresses per day, the team wrote on the Twitter account.

While the reason behind the growth remains unknown, the experts believe that the creation of LTC wallets might have been incintivized by the strategic partnership with the cryptocurrency lending platform Cred. The partnership announced in mid-February allows Litecoin holders to earn up to 10% interest on their coins via MyCred.io. Considering the growing popularity of DeFi apps, a wave of new LTC wallets might reflect users' desire to capitalize on the DeFi boom.

LTC/USD: Technical picture

On the intraday charts, LTC/USD attempted a recovery towards $42.00, but failed to clear the local resistance created by 1-hour SMA50 (currently, this MA is registered at $41.46). A sustainable move above this area is needed for the upside to gain traction with the next focus on $42.80 (1-hour SMA200) and $43.30 (the resistance area that capped the recovery on June 26.)

The RSI on 1-hour chart points downwards, which means that LTC may be vulnerable to the short-term losses with the nearest support created by psychological $40.00. If it is broken, the sell-off may be extended towards the recent low of $39.44 and $38.00, which is the lowest level since April 16.