Litecoin Price Analysis: Price movement remains sluggish, despite high network activity


  • Litecoin's network activity is significantly high, despite low prices.
  • The divergence could be foreshadowing a move up by LTC in the cryptocurrency markets.
  • Litecoin’s MimbleWimble protocol is on track for a testnet launch this month.

Despite the recent drop in prices, Litecoin's (LTC) network activity has continued to be significantly high. Data by Santiment shows that Litecoin has witnessed a three-month high in address activity divergence when compared to its current price level.

As per Metcalfe’s law, the price of a coin or a token is generally dependent on the network activity. In Litecoin’s case, a divergence between daily active addresses and price could foreshadow LTC's possible push in the cryptocurrency markets in the near future. 

In a recent tweet, David Schwartz, Litecoin Foundation’s Project Director, used some stats to explain that Litecoin’s fundamentals are currently very strong.

Furthermore, in his monthly MimbleWimble update, David Burkett noted that everything is on schedule for a testnet launch this month. 

Everything is on track for a testnet release at the end of this month. I’m still figuring out a few final details, but I’ll share more information later this month about what the testnet will look like and how everyone can get involved.

LTC/USD daily chart

LTC/USD dialy chart

LTC/USD bulls failed at the $48.70 resistance line. The price has since dropped to $47.55 in the early hours of Friday and is presently sitting on top of the SMA 200 curve. The relative strength index is hovering horizontally around 39.39 and hasn’t dropped to the oversold territory, yet. As such, more price drop could be expected. However, can we expect any wild price swings? Not quite, as per the IOMAP.

LTC IOMAP

fxsoriginal

LTC is sandwiched between strong healthy and support levels. The price can only hover between $46.26-$48.

LTC/USD hourly chart

LTC/USD hourly chart

LTC/USD hourly chart failed at the $48.75 resistance line and has since charted five straight bearish sessions. In the process, the hourly price chart is trending in a downward channel formation. The MACD shows increasing bearish momentum, so overall sentiment in the hourly chart remains bearish.

Key levels

LTC/USD

Overview
Today last price 47.7956
Today Daily Change -0.9125
Today Daily Change % -1.87
Today daily open 48.7081
 
Trends
Daily SMA20 55.1326
Daily SMA50 56.3123
Daily SMA100 50.043
Daily SMA200 47.8375
 
Levels
Previous Daily High 49.4809
Previous Daily Low 47.8297
Previous Weekly High 64.3919
Previous Weekly Low 45.4339
Previous Monthly High 68.9714
Previous Monthly Low 51.615
Daily Fibonacci 38.2% 48.8502
Daily Fibonacci 61.8% 48.4605
Daily Pivot Point S1 47.8649
Daily Pivot Point S2 47.0217
Daily Pivot Point S3 46.2137
Daily Pivot Point R1 49.5161
Daily Pivot Point R2 50.3241
Daily Pivot Point R3 51.1673

 


 

Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.

Cryptos feed

Latest Crypto News


Latest Crypto News & Analysis

Editors’ Picks

Bitcoin Price Forecast: BTC whales plotting a bullish attack

Bitcoin (BTC) is changing hands at $10,750, mostly unchanged since the start of the day. The cryptocurrency attempted a recovery to $11,000 on Monday but was thrown back inside the range by aggressive short-term sellers.

More Bitcoin News

Top 3 Gainers: OMG, SXP, and STORJ explode 70% and are eying up more gains

The entire cryptocurrency market is bouncing back up, strongly gaining more than $28 billion in market capitalization over the past week. Some of the biggest gainers include OMG, SXP, and STORJ. 

More Cryptocurrencies News

LINK goes through consolidation, preps for a breakout

LINK broke above the downward trending line this Thursday and is currently trending horizontally between the $10 support line and the SMA 20 curve.

More ChainLink news

Bitcoin's mass adoption passes the point of no return

Bitcoin was created in response to the Financial crisis of 2008 and developed within a narrow circle of computer geeks, coders, and libertarians fixated on personal freedom, anonymity, and independence from all sorts of authorities. 

More Bitcoin News

BEST CRYPTO BROKERS/EXCHANGES

Bitcoin Weekly Forecast: Keep calm and HODL on until the USA elects the president

Bitcoin (BTC) partially regained the losses incurred at the beginning of the week; however, the upside momentum is still too weak to take the price out of the bearish territory and ensure a sustainable recovery. 

Read the weekly forecast

BTC

ETH

XRP