Litecoin (LTC) up 8% as On-Chain Activities Hit New High, What Comes Next?
Litecoin (LTC) is gradually reversing some of its gains as subtle consolidation returns to the market. While Litecoin is trading at $68.65, down by 1.35% in the past 24 hours, Santiment data projects an optimistic outlook for the Layer-1 protocol on grounds of increased on-chain transaction activity.
⚡️ #Litecoin saw rapidly rising #onchain movement to end the work week, with address activity and whales both hitting levels last seen in June. Additionally, dormant $LTC suddenly had a big spike, usually indicative of more coins beginning to circulate. https://t.co/ILZua1tEzV pic.twitter.com/MT1MZ2K15i
— Santiment (@santimentfeed) October 27, 2023
As Santiment pointed out, Litecoin aims to end this work week with a massive spike in transactions. The outlook in its trading volume is in negative terms, and it is marked by the 3% drop pegging the amount traded at $353,198,358. The Santiment data revealed the total number of daily active addresses is pegged at 319,000 on average for the week, while the whale transactions recorded came in at 7,418.
Such transaction growth is not uncommon for Litecoin and the majority of the high liquidity L1 protocols around. Litecoin was a big beneficiary of the latest market resurgence as its price soared as high as 6.42% in the trailing seven-day period and by a similar jump for the month.
Though a bearish correction is currently underway, the sustained growth of on-chain transactions as marked by Litecoin can turn this negative trend into a healthy one in the near future. To project what comes next, we can expect a rebound at $66 should the current drawdown hit that support zone.
Trailing Bitcoin as market driver
It is not a myth that Litecoin maintains a close correlation to Bitcoin, and observable moves in the latter can have a profound impact on the former.
In today’s market, Bitcoin has a lot of positive fundamentals that can notably boost its price over the coming weeks and months. The growing clamor for spot Bitcoin ETF product approval by the United States Securities and Exchange Commission (SEC) is also bolstering the optimism for growth.
This event will undoubtedly impact Litecoin and, as such, it will build on the records it has achieved since its inception 12 years ago.