- Litecoin has been recognized in terms of transaction activity. This makes it ideal for fast-paced trades.
- Assessing LTC’s potential for a good short trade as it swings within a 2-month range.
Litecoin [LTC] Q4 2022 was one of the most profitable quarters for cryptocurrency. Recent observations indicate that the cryptocurrency will continue this trend in Q1 2023, based on significant interest in LTC.
Read Litecoin’s [LTC] Prediction of Price 2023-24
Litecoin’s latest update may offer a clearer idea of what to expect for the next few weeks. The update shows that Litecoin currently ranks second on BitPay, which is the largest cryptocurrency payments processor in the globe. Litecoin was involved with roughly one in four BitPay transactions.
The most recent numbers show that Litecoin is the 2nd most traded currency and the world’s largest crypto payment processor. 1 in 4 transactions use Litecoin. #Litecoin⚡ $LTC & @BitPay It makes it easier #PaywithLitecoin pic.twitter.com/trBPrRWJIk
— Litecoin (@litecoin) January 5, 2023
Litecoin bears regain dominance
If the update is correct then Litecoin investors should look forward to interesting times. This is important considering Litecoin’s performance in December.
Litecoin suffered a large retracement during December, but has held onto some of its November gains. It is interesting to note that LTC’s price action over the past two-three months suggests that it trades within an ascending price channel.
After being in contact with ascending resistance, cryptocurrency went backwards and bounced off its ascending support towards December’s end.
Source: TradingView
After peaking at $77, the subsequent rally towards December seems to have lost its momentum. Since then, the bears are in control. This resulted in an outflow as indicated by MFI as well as a decrease of relative strength.
If Litecoin’s downside continues, investors should expect at least another 4% before the price drops back to the support range. Numerous observations from the on-chain support the expectation of bearish pressure. For instance, the weighted mood has been moving downwards since January.
Source: Santiment
LTC’s transaction count has also tanked, indicating lower demand at the current price level. These changes occur after a significant upside. This could indicate that there is enough liquidity to support profit taking. The 90-day average coin age has been trending upwards since mid-December.
Source: Santiment
A 58.66x hike on the cards if Litecoin hits Bitcoin’s market cap?
In the last two days, there was an increase in whale activity. This could be due to whales taking advantage of the situation.
The profit-taking has caused a slight drop in the price, but it is possible that there will be further downside over the next few days if the trend continues. Investors should expect a support retest if this happens. It is possible that traders have decided to keep their heads up due to the absence of strong whale activity.