Litecoin network adds 300,000 addresses in a week, ahead of halving, Litecoin price to rally too?
- Litecoin price is trading below the $80 mark, on the verge of being oversold.
- The network has gained more than 300,000 new addresses in the first week of May.
- The next Litecoin halving is scheduled for August 12 tentatively, and such events have been synonymous with price rises.
Litecoin price, despite having a major event coming up in about three months, is still mostly following the broader market cues. However, the altcoin’s investors have been growing bullish by the day, and the same is visible in their participation, which is currently far higher than the average.
Litecoin price declines, but investors grow
Litecoin price in the last three days has noted a decrease of more than 12%, which pushed the altcoin below the $80 mark to bring LTC to $78 at the time of writing. Following Bitcoin’s lead, the altcoin has hit a monthly low, but its investors seem to be motivated not by the price action but by something else.
LTC/USD 1-day chart
In the first week of May, the Litecoin network noted the addition of nearly 300,000 new addresses that hold some amount of LTC. This is a nearly 300% jump from the average weekly rate, as throughout the last month, the network only added a total of 300,000 addresses, bringing the weekly average to 75,000.
Litecoin addresses holding a balance
The total addresses holding a balance now stand at 7.56 million, and the possibility of the same rising further is high. This is because the “silver to Bitcoin’s gold” is set to go through its third halving event, wherein the reward for validating a block will be slashed by 50% from 12.5 LTC to 6.25 LTC.
Litecoin halving events
These events have been synonymous with price rises, as observed in the past in August 2015 and August 2019. Thus by the looks of it, crypto investors are preparing to bank on this potential and make profits by joining the network.
This could prove to be bullish for the price action as well, as investors could likely accumulate further, given Litecoin price is low right now. As it is, the Relative Strength Index (RSI) is nearing the oversold zone, below 30.0. A move into the zone followed by an exit would confirm a reversal in trend, triggering a recovery rally.
If this situation plays out over the next couple of days, Litecoin price might be in for a rally.
Author
Aaryamann Shrivastava
FXStreet
Aaryamann Shrivastava is a Cryptocurrency journalist and market analyst with over 1,000 articles under his name. Graduated with an Honours in Journalism, he has been part of the crypto industry for more than a year now.
