- Litecoin has been able to maintain decentralised operations all through its history
- LTC is currently bearish, but metrics appear bullish
The Litecoin [LTC] Foundation made every effort to show why LTC is a superior cryptocurrency. This includes all Black Swan incidents that took place in 2020. These incidents have exposed vulnerabilities and cracks in many crypto projects.
Read Litecoin’s [LTC] Prediction of Price 2023-24
Centralized operations are a common sign of vulnerability. The Litecoin Foundation’s managing director, Alan Austin, released an update confirming that they have maintained a decentralized approach with their operations.
It was also funded by donations and volunteers, rather than sitting on large sums of cash.
And unlike many other crypto companies, we are not like them. @LTCFoundation You are not sitting on huge amounts of money. Far from it. This is because unlike other projects and their tokens, Litecoin was quite launched. There was no premine or ICO that could give founders access to Litecoin.
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— Alan Austin (@alangaustin) December 11, 2022
Austin noted that the Litecoin Foundation made one decision based on community input. There have been many instances in the past when entire crypto-organizations collapsed due centralized or individual decisions.
Litecoin also took steps to make it easier for users to access the network. In the past 12 months, the network has increased ATM access by 7.8%.
In the past year, Litecoin accessibility at ATMs has increased by 7.8%!
🥈 Most frequently used #crypto Pay for it!
🥈 The majority of these are available at ATMsFind yours https://t.co/gx8yZW3M8H – #PayWithLitecoin #Litecoin #sundayvibes pic.twitter.com/ysvXChZPMY
— Litecoin Foundation ⚡️ (@LTCFoundation) December 11, 2022
This development emphasized Litecoin’s goal of ensuring that people could easily access the cryptocurrency. The network was creating gradual steps that would help in adoption.
Recap of the price action for Litecoin
Last week, Litecoin saw a price-to-RSI divergence setup that was higher than usual. This is a common pattern associated with a bearish outlook. LTC plummeted by more than 9% from its $84.97 weekly peak to $74.98 on 12 December.
Source: TradingView
Litecoin’s Money Flow Index (MFI) registered outflows last week because of the sell pressure. But, this week began with a sign of incoming buying pressure. If this trend continued, then LTC’s downside might be limited.
Evaluation of the potential for a bullish rebound
Litecoin’s ability to bounce back from its current range would depend on whether it could drum up enough buying pressure at the time of writing. Most of the sell pressure was coming from addresses holding between 10,000 – one million coins.
Whales in the 1,000 – 10,000 LTC bracket and those holding over one million coins were contributing to the buy pressure at the time of writing.
It was difficult to determine whether the trend would continue, or if it would pivot due to the lack of consistency among top whales regarding buy and sell pressure. The current weighted sentiment remains bullish.
Source: Santiment
The above analysis showed that there was some selling pressure, but that the demand or buying pressure was increasing. Regardless, LTC’s performance in the coming week will largely depend on the overall state of the crypto market.