Litecoin, one of the first coins in the crypto-space, has had a rather mellow run of late. In fact, at the time of writing, the coin was still 54% down from its all-time high of $410. Nonetheless, recent developments in the ecosystem, as well as heightened adoption that LTC witnessed lately have acted as catalysts of growth.
However, with LTC’s price still oscillating close to the $187 mark, the immobility in prices is almost worrying for LTC holders and traders.
Adoption on the rise
The adoption of Litecoin payments seem to be on the rise. Recently, BitPay, a Bitcoin service provider, and Verifone partnered to drive the adoption of digital payments through LTC.
Verifone is one of the world’s biggest point-of-sale payment processors, facilitating close to $440 billion each year in annual transactions. BitPay is a cryptocurrency payment processor handling over 60,000 consumer transactions each month involving BTC, ETH, LTC, and some more.
Amid the increased adoption, Litecoin’s on-chain activity exploded with a rise in payments on the network. In tandem with that, the number of LTC transactions rebounded to over 140K over the last couple of days after falling close to the 100K mark in early October.
This came just a few days after the Litecoin Foundation tweeted about the launch of its LTC Visa Debit card, powered by fintech firm Unbanked. Additionally, LTC’s transaction volume USD saw an over 60% spike and stood at $2.51 billion on October 27, the number was 824.5 million on 26 October, 2021.
Further, as per Litecoin Foundation, LTC had reached over 50 million merchants worldwide as the altcoin saw increased institutional investments. This came alongside a modest rise in LTC’s active addresses and new addresses.
In fact, Litecoin’s new addresses were at an all-time high of 306,447 at the time of writing. The same was indicative of new participants flocking to the network as transitions and LTC payments saw a rise.
What about the price?
While on the adoption front LTC has been performing well in terms of consumer finance, as well as institutional investments, its price seems to be stuck in a range-bound movement. In fact, LTC fell by almost 11% in selloffs on 27 October even though on-chain metrics flashed bullish signals.
Litecoin’s price is trying to hold its vital moving averages of 100 and 200-day lines on long-term while failing to hold its short-term moving average. One rather interesting trend was that Litecoin was at a ten -year low against BTC, as LTC’s fundamentals looked strong. So, could this be a sign of a breakout? Well, historically, Litecoin witnessed a huge bounce every time it saw such low levels on the LTC/BTC chart.
On the shorter time frame, too, LTC had finally started to gain momentum. The alt was trading at $187 noting close to a 2% rise on a daily window. However, if at all LTC falls in the near term it will find support at $160.
At the time of writing as LTC finally seemed to gain momentum and the above $200 level didn’t look so far for the coin. In fact, looking at Litecoin’s increased on-chain activity, the coin could see the $230 level soon, provided bulls keep pushing the prices.