Litecoin, once celebrated as the silver to Bitcoin’s gold, is now navigating through turbulent waters. Since its peak on April 1, the cryptocurrency has seen a significant drop in market value, with a staggering 36% decline. This decline has spurred traders’ and investor’s concerns. It has led many to wonder whether Litecoin, a relatively old digital cryptocurrency asset, is dying.
The recent liquidation of 45,000 wallets holding between 0.1 and 1 LTC is one of the most concerning signs of this downturn. These smaller wallets, often owned by retail traders or less major players in the cryptocurrency market, are rapidly emptying. This massive departure indicates a rising lack of trust in Litecoin’s prospects. Panic selling is sometimes motivated by fear of more losses, and this behavior is becoming more common among Litecoin investors.
Source: Santiment
Also Read: Litecoin Whale Transactions Surges Exponentially, Accumulating 3 Million Tokens Over the Last Month
Technical Indicators Paint a Grim Picture
Technically speaking, though, the performance of Litecoin can hardly be paired with optimism. It’s trading just over $63 and well below some key moving averages that have become resistance rather than support. Here, the most outstanding significant level is the 200-day moving average, which is still notably above the current price compared to where a bullish reversal seems far. On the other hand, for Litecoin to acknowledge any impact, it must first recapture the $70 mark, which was not executable under the prevalent conditions.
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Moreover, Litecoin’s Relative Strength Index (RSI) hovers around 44, indicating that the asset is not yet in oversold territory but also not attracting significant buying interest. This is especially so where no massive volume skyrocketing is usually associated with deeply-fetched promises or outlandish claims in the market. However, it has shown the behavior below, and it is still unclear whether Litecoin can recover if it does not attract more new buyers.
Conclusion
While the current market data presents a bleak outlook for Litecoin, the cryptocurrency world is known for its volatility and sudden shifts. Despite the dire circumstances, a turnaround is always possible, though the catalyst for such a reversal remains unclear. Litecoin faces a tough road ahead, and investors are left to wonder if the once-prominent digital asset can regain its former glory.
Also Read: Michael Saylor Says “Bitcoin Rules” During Market Downturn, Shares Controversial Post
Maxwell Mutuma
Maxwell is a crypto-economic analyst and Blockchain enthusiast, passionate about helping people understand the potential of decentralized technology. He writes extensively on topics such as blockchain, cryptocurrency, tokens, and more for top publications such as Coingape, Coin Edition, and The Coin Republic. His goal is to spread knowledge about this revolutionary technology and its implications for economic freedom and social good.