Analytics platform Santiment reported a significant increase in Litecoin activity. It also revealed a major shift in coins that were previously dormant. The analyst says that these developments could push the altcoin price towards $100.
Litecoin’s address and whale activity increases
cryptokoin.comAs you follow from , Litecoin made a commendable rally from the $60 support in October. However, thereafter, it experienced a temporary pause at $72. A pre-halving rally pushed LTC as high as $115. However, the crypto winter soon caught up with cryptocurrency. Thus, it wiped out all gains since the beginning of the year.
Analysis platform Santiment’s latest insight into the behind-the-scenes of the altcoin Litecoin network has revealed a significant increase in protocol activity. Addresses actively interacting on the blockchain increased sharply to 319 thousand as crypto prices rose over the past week. More important was the change in previously dormant LTC. When dormant coins move, it is a sign that “more coins are starting to circulate.” This causes volatility to increase. In this context, Santiment shared the following:
Litecoin saw surging onc-traitor movement to end the working week. Address activity and whales have both reached levels last seen in June. In addition, dormant LTC suddenly showed a huge increase. This is usually an indication that more coins are starting to enter circulation.
How will the development affect the LTC price?
Therefore, the increase in dormant LTC is likely to be followed by two scenarios. First, if these addresses move coins to exchanges, it is possible that this will trigger a sale. Secondly, this change could provide liquidity to support a much larger recovery for the altcoin towards $100. For now, investors should consider remaining patient until Litecoin breaks the impasse with a move above $70 or breaks below $67, according to analyst Jhon Isige. In this context, the analyst draws the following technical picture.
Altcoin price technical view
Litecoin price maintained an impressive rally for more than a week. But then it suffered a setback on Thursday. Support at $70 (now resistance) was expected to absorb the selling pressure. However, it overwhelmed the bulls at this price point. As a result, LTC experienced a larger decline to $66.
While the altcoin began trading at $67.67 on Friday, the momentum behind the crypto has largely diminished. This means that if it breaks through the nearest support at $67, LTC could slide lower in search of fresh liquidity before starting to regain ground. The Directional Movement Index (DMI) is approaching a crucial junction that could determine whether the declines will continue or the uptrend will continue in the short term.
The long-term hold of the 100 Exponential Moving Average (EMA) (blue) above the 200 EMA (purple) shows that the bulls still have the upper hand despite the correction. Therefore, it would be beneficial for traders to wait a bit before making their decision to lock in gains. A move below the immediate support at $67 could see the altcoin price retest the next support area at $66. However, if the declines intensify, it is possible for the bears to set their sights on $64. Then, their target will be $60, which is the October low support.
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