Litecoin investors should read this before taking a position on LTC
- Litecoin social hike drops, affecting the coin’s performance
- The price action revealed that LTC was captured in between a price decrease and sustaining its current region
Litecoin’s [LTC] sojourn in recent times produced profits, much to the delight of cryptocurrency investors. At press time, its seven-day performance was 23.18%, making it the best-performing crypto out of the top-cap assets. However, Litecoin risked losing its dominance, and investors expecting a repeat of last week’s performance need to be cautious.
Read AMBCrypto’s Price Prediction for Litecoin 2023-2024
According to LunarCrush, Litecoin had lost its position as per social mentions and engagement, as it dropped below the 128th position. So, there was the likelihood of the position affecting the price.
No loyalty to the cause
As of this writing, LTC was trading at $77.91. Although it was an increase from the last 24 hours, some indicators showed that the uptick could be shaky.
According to the four-hour chart, LTC was close to hitting the oversold level. This was because the Relative Strength Index (RSI), at 61.53, indicated that there has been a lot of accumulation lately. Once the RSI hits 70, a reversal from a strong buying momentum could be imminent.
A look at the Directional Movement Index (DMI) indicated that the bears and bulls were in a struggle for control. While the buying power (green) was still above the selling (red), the Average Directional Index (ADX) showed signs of a fall from its value at 27.61.
In a case where the ADX drops further, LTC could succumb to selling pressure and choose the downward path.
The above chart also pointed to the Exponential Moving Average (EMA). As of this writing, the 20 EMA (blue) maintained its position over the 50 EMA (yellow).
At this point, it meant that LTC’s value might still increase far better than the 4.78% 24-hour uptick. With the indicators at crossroads, a preferable stance for investors might be to observe the condition before taking a position.
Litecoin peaks have been affected
Away from its price action, the on-chain positions of LTC, which had initially reached the apex, were down. According to Santiment, the one-day circulation had dropped to 247,000, despite hitting 1.34 million some days back.
This implied that the number of LTC transactions that had taken place had substantially subsided. Hence, you could relate this position to reducing demand for the coin.
On other ends, the NFT trades volume had also winded down. With the NFT volume already down to 175,000, traders who were seemingly interested in owning digital collectibles linked to the crypto had slowed their accumulation. So, the LTC ecosystem, at large, could be affected by the reduction in activity.