Litecoin fails to overcome key resistance level despite hitting new milestones
- Litecoin hits transaction and hash rate milestones, but investors are still sitting on the sidelines.
- LTC was stuck in limbo as demand slowed down amid weak sell pressure.
Litecoin [LTC] concluded an interesting week during which it managed two major milestones. On 27 January, the network announced that it had facilitated slightly over 142 million transactions.
The Litecoin network just processed its 142 millionth transaction!⚡ pic.twitter.com/wyZQe4w08L
— Litecoin (@litecoin) January 27, 2023
Read Litecoin’s [LTC] Price Prediction 2023-24
The 142 million transaction milestone came just 24 hours after a previous milestone about its hash rate. Litecoin’s hash rate peaked at 742.30 TH/S earlier in the week. This means it received a network strength and security boost. The transaction milestone confirms that the network is still enjoying steady growth.
These milestones currently confirm that the Litecoin network is in a healthy state, especially with the upcoming halving. These signs may also support LTC’s value and perhaps support a higher price level. Speaking of price, Litecoin delivered an overall bullish performance in January. However, it encountered resistance near the $90 price level.
LTC traded at $88 at press time and has been trading within the same range for the last few days. This confirmed that not much sell pressure was forthcoming. As a result, the price was stuck within a narrow range.
Can Litecoin overcome the current resistance level?
The recent milestones might boost investor sentiment, potentially lending favor to LTC bulls. However, this has not been the case so far. Both the RSI and MFI have retraced significantly in the last seven days, suggesting that the bulls are losing their grip.
This is a reflection of the dip in velocity, as observed since 18 January.
LTC’s velocity is not the only metric that has tanked in the last two weeks. Its realized cap metric has also tanked by a sizable margin this month. This meant that there was a lot of incoming liquidity that was still not in profit, especially in the last few days.
The observation also suggested that most of the buying power fueling the bulls occurred in the first week of January and in the previous month.
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There was significant whale activity earlier in the week, which may offer some insights into LTC’s current struggle with resistance. The whale transaction count metric spiked on 23 – 24 January. This was likely due to profit-taking, which may explain the lower relative strength.
The whale activity count also reignited a surge in active addresses after a dip on 24 January. Litecoin has so far maintained a healthy level of address activity, which indicates consistency. Another major move might be on the way. At press time, investors were waiting to see where the market would lean.