Litecoin: Despite new update, LTC struggles to hold miner interest
- After the relief of a new update, LTC’s hashrate registered an uptick.
- LTC’s chart was painted red, as indicators looked bearish.
On 2 March 2023, Litecoin [LTC] released a new network upgrade named Litecoin Core 0.21.2.2, which, according to the official announcement, was a new minor version release. The new release included an important security update affecting prior versions. The release further contained fixes that hardened node and network securities.
The newest version of Litecoin Core v0.21.2.2 is now available! ⚡
Please update at: https://t.co/Jhu3nliBlj
Learn more at: https://t.co/JG7FDCfbpD pic.twitter.com/vljdVCsvgG
— Litecoin Foundation ⚡️ (@LTCFoundation) March 2, 2023
Read Litecoin’s [LTC] Price Prediction 2023-24
Mining activity on Litecoin increased
While the update was pushed, LTC’s mining space witnessed growth. As per Coinwarz’s data, LTC’s network hashrate registered a slight uptick. An increase in hashrate generally suggests an influx of new miners into the network.
It was interesting to note that since the beginning of this year, LTC’s mining industry has flourished as its price has gone up considerably. However, miners’ interest might end soon as LTC’s price plummeted, suggesting less profits.
Bears push LTC’s price down
Additionally, as per CoinMarketCap, LTC’s price declined by over 7% in just 24 hours alone, raising alarm in the crypto space. At press time, it was trading at $89.12 with a market capitalization of over $6.45 billion. LTC’s daily chart suggested that the bears had entered the market and were driving the coin’s price down.
For example, LTC’s relative Strength Index (RSI) was headed further below the neutral mark. The Chaikin Money Flow (CMF) also registered a downtick. LTC’s price touched the lower end of the Bollinger Bands, suggesting that the coin’s price was about to enter a high volatility zone. The MACD’s data revealed a bearish edge in the market, further increasing the chances of a continued downtrend in the coming days.
How much are 1,10,100 LTCs worth today?
More factors to worry about
Like LTC’s daily chart, the blockchain’s performance on the metrics front also looked concerning. LTC’s price decline was accompanied by a massive surge in volume, which legitimizes the downtrend. Thanks to the price plummet, LTC’s daily on-chain transaction volume in profit also registered a decline.
Demand from the derivatives market also decreased as LTC’s DyDx funding rate declined sharply on 3 March. On top of that, negative sentiments around LTC raised concerns as the metrics spiked lately, which reflected the declining investor confidence.