Decoding how Litecoin managed to break the norm in a bearish market
- Litecoin’s price increased by more than 15% in the last seven days.
- Miner fees increased, and LTC hashrate was also on the rise.
While the entire crypto market continued to witness bears’ wrath, Litecoin [LTC] was able to break the chain. According to CoinMarketCap, LTC’s price increased by over 15% in the last seven days. LTC’s daily chart was also green, and at press time, it was trading at $93.27 with a market capitalization of more than $6.8 billion.
Realistic or not, here’s LTC’s market cap in BTC terms
Litecoin grows on multiple fronts
Not only did LTC’s price surge, but as per the Litecoin Foundation’s latest tweet, Litecoin’s transaction count also skyrocketed.
According to the tweet, the Litecoin network is processing close to one million transactions every two days, which is commendable.
The #Litecoin network is processing close to ONE MILLION transactions every two days. $LTC ⚡️ pic.twitter.com/kSrmtfiRzW
— Litecoin Foundation ⚡️ (@LTCFoundation) May 17, 2023
A quick look at Litecoin miners
Litecoin’s hashrate registered a decline at the beginning of May. However, the scenario has now changed as the graph has moved up, indicating an influx of new miners.
The increase in hashrate can be attributed to the uptick in miners’ fees. The rise in fees coupled with more transactions and price gains could lure in more miners.
Is the price hike all hype?
A major driving force behind the price pump could be the hype around Litecoin’s upcoming halving. The next halving is scheduled to happen in 69 days from the time of this writing.
Historically, after halving, LTC’s price goes up. Therefore, the possibility of this hype fueling LTC’s pump also seemed pretty likely.
Will LTC’s price continue to surge?
A look at LTC’s on-chain metrics gave hope for a further price uptick in the coming days. For instance, LTC’s MVRV Ratio was high, which is generally a bullish signal.
Moreover, the price hike was backed by increased volume, providing a foundation for the uptrend.
Additionally, positive sentiments around LTC were high, reflecting investors’ confidence in the coin. Its daily active addresses also remained relatively stable, which too looked optimistic.
How much are 1,10,100 LTCs worth today
The bulls are hard to beat
Upon checking Litecoin’s daily chart, the possibility of a continued uptrend seemed even more likely. The MACD’s data showed that bulls were leading the market. LTC’s Exponential Moving Average (EMA) Ribbon displayed the possibility of a bullish crossover.
The coin’s Relative Strength Index was above the neutral zone, yet another positive sign. However, the Chaikin Money Flow registered a slight downtick, which can cause trouble.