August 23, 2023
Despite the volatile week in the cryptocurrency market, there were several altcoins showing promising signs of recovery. Litecoin (LTC) was one such altcoin leading this bullish charge. Even though the crypto sector continues to struggle with a comeback - and several traders reporting significant losses - LTC offers a sparkle of positivity to look forward to.
For that reason, LTC is our “coin of the week.” Let’s dig into the details behind its strength and examine if it’s going to last.
In the market-wide crash on August 18th, Litecoin followed the trend and saw significant losses. On that day. LTC dropped from $73.30 to $61.90 in a matter of minutes. However, those losses did not last long. Unlike the rest of the crypto market, LTC began a swift path of recovery, bouncing back 8% to $67 over the course of 2 days.
While LTC has since slightly declined in price, it’s a positive sign to see an altcoin like LTC recover so swiftly, potentially signifying that a massive drop will not cause long-term damage to the market.
Ever since the Litecoin Halving event on August 2, 2023, several analysts pointed out bearish signals for the Litecoin network. However, even though miners were selling off and there was a decline in whale transaction volumes, there is one important on-chain data statistic that remains bullish.
LTC long-term holder addresses not only remain stable but continue to increase over time. Looking at historical data, this could be the main reason for Litecoin’s price increase.
Time and time again, LTC long-term holders prove they are resilient even in times of extreme fear in the market. They HODL strong and even buy more LTC during market crashes. If LTC shows a strong price recovery in 2023, all fingers point to the long-term holders as the catalyst.
Litecoin could potentially reclaim its $100 price if long-term holders continue to increase in number. In the past, LTC has recovered well over 100%. Hence, it surely has the potential to do it again and perhaps even explore new all-time highs during the next bull market.
That being said, Litecoin miners are exhibiting some bearish trading activity that may push the price lower. With rising power costs and moderate fear amongst investors, LTC miners may dump even more of their reserves in the coming weeks, leading to a potential dip below $50 for LTC.
Yet, there is also a scenario where if miners continue to sell, LTC could still reclaim $100 if the overall sentiment in the market improves and long-term investors continue to HODL.
In conclusion, expect more volatility in either direction and prepare accordingly.
PRO TIP! Check out MultiHODL’s new TradingView charts to analyze LTC historical data and experiment with technical indicators to improve your LTC trading strategy.
Disclaimer: The content should not be construed as investment advice and does not constitute any offer or solicitation to offer or recommendation of any investment product. It is made available to you for information and/or education purposes only.
You should take independent investment advice from a professional in connection with, or independently research and verify any information that you find in the article and wish to rely upon.
Editor-in-Chief of the YouHodler blog. Connect with him about writing techniques, cryptocurrency, and music.
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YouHodler is regulated in the EU (Italy) and Switzerland, and does not have a regulated UK entity. YouHodler is NOT regulated by the FCA, and protections offered under UK law do not apply.
YouHodler promotions are not targeted at UK investors, and bonuses or loyalty programs like the rewards programme or sign-up offers will not be available to residents of the UK. You can learn more about the services offered to UK customers here.
Do not invest with YouHodler unless you’re prepared to lose all your money or tokens invested. Crypto Currency is considered as a speculative and high‑risk investment and you are unlikely to be protected if something goes wrong. Take 2min to learn more about risks.