Litecoin, one of the prominent cryptocurrencies in the market, has faced a challenging time in 2023. Recent developments show that Litecoin’s price was perilously close to falling below the $60 mark, signaling a potential new year-to-date low.
The Relative Strength Index (RSI), a key indicator of market momentum, leaned bearish as it dipped below the neutral line of 50.0, hinting at the potential for further decline. Although there was a brief attempt to breach the $63 support level earlier in the month, Litecoin couldn’t quite cross the 50-day Exponential Moving Average (EMA).
Litecoin’s price performance has long been tethered to Bitcoin, sharing a correlation of about 0.73, rendering it vulnerable to BTC’s market volatility. Yet, beyond this correlation, Litecoin’s lackluster performance could be attributed to diminishing activity among its whale addresses.
These whale addresses, conducting transactions worth over $100,000, hold approximately 11% of the total circulating supply of Litecoin. Their actions significantly influence market sentiment. However, the data shows that their weekly transaction volume has dipped to $3.01 billion, the lowest since November 2020.
This decrease in whale activity raises concerns among investors, reducing on-chain transactions and liquidity in the Litecoin market, thereby hindering its recovery potential. As Litecoin teeters on the edge of setting new lows for 2023, the lack of action from its influential whale addresses becomes a critical factor to monitor in the coming weeks.
Litecoin (LTC) is priced at $61.28, showing a 2.46% decrease over the past day. Litecoin is the 15th largest cryptocurrency by market capitalization, valued at $4,519,891,903. In the last 24 hours, Litecoin has witnessed a trading volume of $179,029,938, representing 2.82% of its market capitalization.
In conclusion, Litecoin’s performance in 2023 is closely intertwined with Bitcoin’s movements. However, the declining whale activity is an alarming+65 trend that could significantly impact its recovery. As the crypto market remains in flux, investors and analysts would be closely watching for signs of a turnaround in Litecoin’s fortunes.
