Litecoin (LTC) has been in a negative mood since April 01, 2024, falling from $112.98 to a low of $70.83.
The current price of LTC stands at $82, and for now, bears continue to control the price movement. However, the positive information is that LTC holders have exhibited a surge in their participation on the network and it is important to say that addresses conducting transactions have increased by 22.66% from 353,000 to 433,000 in the last three weeks.
This rise in active addresses is the first noted in nearly six months, as the last time this happened was back in November 2023. But where is the price of Litecoin (LTC) going next, and what can we expect from the rest of May 2024?
Today, Crypto Lists will discuss Litecoin (LTC) price estimates from a technical and fundamental analysis perspective. Please note that there are also many other factors to consider when entering a position, such as your time horizon, willingness to risk, and how much margin you have if trading with leverage.
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- 1 Liticoin experienced a rise in active addresses
- 2 Investing in Litecoin comes with risks
- 3 Technical analysis for Litecoin (LTC)
- 4 Important support & resistance levels for Litecoin (LTC)
- 5 What speaks for the rise in the Litecoin (LTC) price
- 6 What indicates the downfall of Litecoin (LTC)
- 7 What do analysts and experts say?
Liticoin experienced a rise in active addresses
Litecoin is an open-source, global payment network that is fully decentralized without any central authorities. Litecoin features fast transaction confirmation times and improved storage efficiency and with substantial industry support, trade volume, and liquidity, Litecoin is a proven medium of commerce complementary to Bitcoin.
The Litecoin Network operates through an interconnected system of ‘nodes’ that exchange information with one another. When a transaction is detected by one node, it relays this transaction to another node. When a block is mined, the new block data is also shared between the nodes of the network. Each one of these nodes individually verifies and validates transactions and blocks, which is part of the fundamental design that makes Litecoin decentralized – without a single person being able to change or dictate ‘consensus’.
Litecoin (LTC) has been in a negative mood since the beginning of April 2024 but the positive information is that Liticoin experienced a rise in active addresses in the last three weeks. This increase in active addresses marks the first instance of growth in almost six months, with the previous occurrence happening in November 2023. The upcoming days are eyed with optimism, with many crypto analysts foreseeing a potential surge in the price of this cryptocurrency.
Litecoin (LTC) is often referred to as digital silver and according to many crypto analysts, the current fall in the price of this cryptocurrency represents a very good opportunity for long-term investors. Despite this, investors should keep in mind that Litecoin also carries its risks as an investment, and history has shown many times that its price can fluctuate dramatically over short periods, leading to substantial gains or losses.
Investing in Litecoin comes with risks
It is also important to mention that some skeptical crypto analysts think that Bitcoin could experience a downside trajectory in the upcoming weeks, and when the price of Bitcoin drops, that usually has a negative influence on the price of LTC and on the rest of the cryptocurrency market. The price of Bitcoin has dropped by more than 12% in the last thirty days, while it has managed to gain by 5% over the last 7 days. This shows how the biggest crypto is failing to get into rhythm. It is now facing the fifth consecutive day of losses which will mark the longest losing streak since October last year.
Data indicates that the overall cryptocurrency market cap has decreased by 17% to $2.4 trillion after Bitcoin reached its all-time high (ATH) of $73,798 in mid-March. It’s crucial to point out that elements such as decreasing investments in U.S. spot Bitcoin exchange-traded funds (ETFs) contribute to negative sentiment and if the price of Bitcoin breaks the $60,000 support level again we could see a significant number of liquidations worth billions on the crypto market. Liquidations happen when a trader’s position is automatically closed because they lack the funds to cover their losses.
In the weeks to come, Litecoin (LTC) will remain significantly influenced by the general situation in the cryptocurrency and hence, engaging in investments related to LTC demands deliberate consideration. Undertaking comprehensive research and evaluating one’s risk tolerance are fundamental measures prior to committing to any investments within this sphere. At the same time, economists are warning that many central banks (especially the Fed) could hold interest rates at restrictive levels for longer, and because of this, they expect a recession that could hit financial markets.
Technical analysis for Litecoin (LTC)
Litecoin (LTC) has weakened more than 25% since April 01, 2024, falling from $112.98 to a low of $70.83. Litecoin’s current price stands at $82, and according to technical analysis, the risk of further decline is still not over. As long the price of LTC is below $90, we can’t talk about a trend reversal, and the price of this crypto remains in the SELL-ZONE.
Important support & resistance levels for Litecoin (LTC)
On this chart (the period from January 2024), I marked important support and resistance levels that can help traders understand where the price could move. Litecoin (LTC) remains under pressure, but if the price advances above the resistance that stands at $90, the next target could be an important resistance level at $100. The current support level is $80, and if the price breaks this level, it would be a “SELL” signal, and we have the open way to $75. If the price drops below $70, which represents a very important support level, the next target could be located around $60.
What speaks for the rise in the Litecoin (LTC) price
Litecoin features fast transaction confirmation times and improved storage efficiency and according to crypto experts, Litecoin is a proven medium of commerce complementary to Bitcoin. Increasing network activity could be a positive signal for LTC, potentially paving the way for future expansion but it’s crucial to consider that the broader sentiment prevailing in the cryptocurrency market can significantly impact LTC’s price direction. Fluctuations are still expected to be a common occurrence in the cryptocurrency market but if the price of LTC advances above $90, the next target could be resistance at $100. A move above $100 would be beneficial for the bulls to remain in control of price movement.
What indicates the downfall of Litecoin (LTC)
The downfall of Litecoin can be influenced by a wide range of factors and the highly volatile nature of the cryptocurrencies may scare investors to sell LTC if some negative news happens in the cryptocurrency market. The current support level for LTC stands at $80, and if the price falls below this level, the next target could be $75. The price of Litecoin is usually correlated with the price of Bitcoin, and if the price of Bitcoin drops again below the $60000 price level, that would certainly have a negative influence on the price of LTC.
What do analysts and experts say?
Litecoin (LTC) is often referred to as the digital silver and many cryptocurrency analysts view the current decline in its price as a favorable opportunity for long-term investors. Expectations are also centered on the idea that LTC may benefit from the fact that the Liticoin network experienced a rise in active addresses in the last three weeks. This rise in active addresses is the first noted in nearly six months, as the last time this happened was back in November 2023. On the other side, some cautious cryptocurrency analysts believe that Bitcoin may face a downturn in the coming weeks and when Bitcoin’s price falls, it often negatively impacts the value of Litecoin and other cryptocurrencies across the market.
Cautious crypto analysts also agree that a slowdown in net inflows on the cryptocurrency market and decreased trading activity are certainly negative factors for LTC that will continue to influence the price of this cryptocurrency in the weeks ahead. At the same time, the macroeconomic landscape remains uncertain; major central banks are still not done with bringing inflation down to their target, and risk-on assets such as cryptocurrencies could suffer in such conditions.
