Despite high network activity, LTC has dropped nearly 15% in the past 30 days. Most indicators and metrics suggest that the price will continue to fall.
Litecoin [LTC] has failed to earn profits for investors as it continues to drop in the top 30 list of cryptocurrencies. However, the coin has indeed performed well in a specific aspect.
In fact, Litecoin’s performance has surpassed that of Bitcoin (BTC) and Ethereum (ETH), which looks quite optimistic for the future of blockchain.
Litecoin surpasses Bitcoin, Ethereum
Litecoin recently tweeted about an interesting development. According to the tweet, LTC continues to dominate BTC and ETH in terms of active addresses.
This closely signals an increase in LTC’s adoption rate and high network usage over the past few months.
In fact, AMBCrypto’s analysis of Santiment data also revealed a similar situation. Litecoin’s daily active addresses have remained consistently high in the past 30 days, with the number exceeding 858,000 on June 6.
LTC bulls take a back seat
Despite the praiseworthy network activity and usage of the blockchain, LTC’s price behavior is not so promising. CoinMarketCap’s data shows that LTC’s price has dropped nearly 15% in the past 30 days.
At the time of writing, LTC’s trading price is $70.61, with a market capitalization of over $5.27 billion, making it the 22nd largest cryptocurrency.
The situation for LTC may worsen in the coming days, as a key indicator suggests a price adjustment.
AMBCrypto’s research on Glassnode data clearly indicates that the coin’s NVT ratio has increased. Typically, an increase in the indicator implies an overvaluation of the asset, increasing the likelihood of a price drop in the coming days or weeks.
For the uninitiated, the NVT ratio is calculated by dividing the market value by on-chain transfer volume, in USD.
To observe whether the bears will continue to dominate, AMBCrypto subsequently analyzed Litecoin’s daily chart. It was found that most market indicators favor sellers.
For example, the MACD shows a bearish trend in the market. The Chaikin Money Flow (CMF) is declining and moving towards the neutral point.
The Relative Strength Index (RSI) also shows a similar downward trend, implying that prices will continue to fall.
Nevertheless, the price of LTC has already touched the lower limit of the Bollinger Bands, suggesting a potential recovery soon.
Reality vs. LTC’s BTC market value
Our analysis of Hyblock Capital data shows that if the price continues to fall, investors may see LTC drop to $67 in the coming days.
However, if the trend reverses, LTC may first target $81.4 to begin a full recovery.