In the last ten years, several cryptocurrencies have come and gone, while others have struggled to stay afloat. Litecoin has managed to stay relevant in the market despite periodic speed bumps and rangebound price fluctuation.
In truth, LTC rose over 50% in early November before succumbing to the Bitcoin and larger market sell-offs.
Since the halting of digital silver’s rising trend, many sectors are worried about whether LTC will make a comeback or revert to its rangebound pace.
Growing Bullish Momentum
After achieving a multi-week high of $302 on November 10, LTC’s price began to follow BTC’s trend. It more or less flowed in the direction of the larger market. LTC’s price has plummeted from $300 to over 25% at the time of writing. However, it was vital for the currency to stay above the $200 mark, which it has done.
LTC varied between $213.83 and $220, gaining 2.54% each day; a surge above $220 might speed up the coin’s progress. There looked to be an increase in buying pressure, which spark a rally. Unfortunately, LTC’s price would need to be in a steadier uptrend to go higher.
Is Adoption Driving Up Prices?
Litecoin’s popularity has skyrocketed over the year, and LTC has had a good year. They repeated this pattern when LHV Pank announced that its customers will be able to invest in Litecoin and other cryptocurrencies. LHV Pank is an Estonian banking and financial services company.
In fact, LTC’s active addresses have been on a parabolic increasing trend since December 2020. This indicates that the network will continue to grow as usage grows.
Additionally, the number of active addresses grew vertically in April 2021, reaching a new ATH on October 10. A considerable increase in network demand and activity has traditionally heralded the beginning of LTC’s price discovery mode. Investors observed a similar rise in demand and activity during the 2013 and 2017 LTC rallies. The price jumping from $23.5 to $369 in December 2017.
Digital Silver Reappearance
Will Digital Silver make a comeback? Despite on-chain statistics indicate a growing network and activity, LTC’s risk reserve ratio has not yet reached the “overbought zones.”
Furthermore, LTC may benefit from the “altseason” if the relationship between LTC and BTC weakens. Previously, LTC sprang to popularity out of nowhere during the bull markets of 2013 and 2017, accumulating 638% and 1,160% in a matter of weeks. As a result, we would not be shocked if there is another LTC surprise.
However, you should not overlook the market’s volatility, and doing your research before investing is crucial to making winning bets.
