Litecoin Alert: Active Addresses Boom, But Price Busts! Will LTC Hit $67 Or $81 Next?

Litecoin (LTC) has been a curious case in the crypto market lately. Despite boasting higher network activity than giants like Bitcoin (BTC) and Ethereum (ETH), LTC’s price continues to slide. Let’s delve into this apparent contradiction and see what the future might hold for Litecoin.

On the bright side, Litecoin seems to be attracting users. A recent tweet by the Litecoin Foundation highlighted a significant statistic: LTC has consistently surpassed both BTC and ETH in terms of authentic active addresses. This suggests growing adoption and active use of the Litecoin blockchain. Independent analysis by AMBCrypto using Sentiments data confirms this trend, with Litecoin’s daily active addresses consistently exceeding 858,000 throughout June.

However, this positive network activity isn’t reflected in LTC’s price. CoinMarketCap data paints a grim picture, with LTC dropping nearly 15% in the last 30 days. Currently, LTC sits at $70.61, ranking 22nd in terms of market capitalization.

Things could get worse before they get better. A key metric, the NVT ratio (calculated by dividing the market cap by on-chain transfer volume), indicates that LTC might be overvalued. According to AMBCrypto’s analysis of Glassnode data, a rising NVT ratio often precedes a price correction.

A closer look at LTC’s daily chart using TradingView reveals a seller-dominated market. The MACD indicator suggests a bearish bias, while the Chaikin Money Flow (CMF) is declining towards neutrality. The Relative Strength Index (RSI) also hints at a potential price drop.

A glimmer of hope exists, though. LTC’s price has touched the lower limit of the Bollinger Bands, which can sometimes signal a possible rebound. AMBCrypto’s analysis of data from Hyblock Capital suggests that LTC could drop to $67 if the downtrend continues. However, a reversal could see LTC reach $81.4 before a full recovery.

Only time will tell if LTC can overcome this bearish sentiment. While its active network is encouraging, investors should be cautious and closely monitor market indicators before making any decisions.