Litecoin (LTC), the digital asset that has been operational for 12 years, saw a surge in on-chain activity and whale transactions, reaching four-month highs, and indicating increased market interest. Despite this, the cryptocurrency experienced a decline in value early Friday, October 27, 2023.
Sentiment data revealed a sharp rise in the on-chain movement towards the end of the week. Dormant LTC tokens significantly increased, suggesting more circulation among traders. On Wednesday, October 26, whale transactions valued at $100,000 or higher hit 7,418 in Litecoin. Concurrently, previously inactive wallets started moving LTC in large volumes - a six-week peak.
The number of daily active addresses rose to 319,000 - the largest spike since June 2023. This suggests a bullish outlook for LTC despite its price struggles. The cryptocurrency rallied nearly 10% over the past week but declined by 1.5% on Friday.
Despite a 1.35% dip on Friday, Litecoin is trading at $68.65 and has seen a 6.42% price increase in the past week. However, it's experiencing a bearish correction and if this trend hits the $66 support zone, a rebound is expected.
The current LTC price is $67.69 on Binance. Increased Litecoin reserves on exchanges or whales shedding their LTC holdings could send it lower. However, rising demand from market participants combined with bullish on-chain metrics could kickstart a recovery in Litecoin.
The digital asset recorded a 3% drop in trading volume ($353,198,358) but maintained an average of 319,000 daily active addresses and 7,418 whale transactions. Its trajectory is closely linked to Bitcoin's positive fundamentals such as potential Bitcoin ETF (TSX:EBIT) approval by the SEC which could lead to a significant performance boost for Litecoin.
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