Markets
Litecoin (LTC) Price Drops 8%, Is It a Buying Opportunity?
The price of Litecoin has fallen 8% over the past 10 days, falling to a daily low of $82.57 on May 29, but as new participants continue to enter the market, LTC could be on the verge of a major recovery.
Litecoin price drops 8% after Ethereum ETF frenzy
The announcement of the imminent approval of Ethereum ETFs on Monday, May 20 initially triggered a bullish surge in cryptocurrency markets. However, enthusiasm began to wane after the SEC’s official approval on May 23, leading the global cryptocurrency market into a consolidation phase.
Since May 21, projects like Litecoin (LTC) have faced challenges gaining momentum. Over the past week, investors have shown a marked preference for ETH and other tokens within Ethereum DeFi ecosystem.
As illustrated in the TradingView chart above, the price of LTC decreased by 8% between May 21st and May 29th.
In anticipation of the inflow of funds into Ethereum ETFs, which could still take weeks or even months to go live, investors are implementing various strategies to profit from the ongoing consolidation phase of the crypto market.
New investors create 400,000 new LTC wallets after ETH ETF launch
Network data shows that an unusually high number of new wallets have been created on the Litecoin network in recent days, signaling that new participants are entering the LTC markets, likely capitalizing on the recent LTC price drop.
The Santiment total holder quantity chart shown below monitors daily changes in the total number of wallet addresses funded in a cryptocurrency network. An increase in active wallets suggests that the number of holders who joined the network exceeded those who exited their positions and vice versa.
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A large number of new participants were seen on the Litecoin network this week amid the 8% price correction.
As can be seen from the chart above, there were only 8.17 million active LTC wallets on May 21st. But that number has now increased to 8.21 million LTC wallets at the time of writing on May 29, reflecting a rapid inflow of 300,000 new Litecoin wallets in the last seven days.
This signal suggests that there is overwhelming positive sentiment in the Litecoin ecosystem despite the recent price drop. And if this vital network growth trend persists, Litecoin price could experience a major recovery in the coming days.
LTC Price Prediction: Recovery Imminent to $90
Litecoin price is down 8% on a weekly basis, but the influx of 300,000 new LTC wallets puts BCH price in prime position for a major rally towards the $90 level.
With LTC currently trading at $83.76, Bollinger band technical indicators show that bulls are still holding firm above the critical support level at the 20-day SMA price of $83.59.
If holders who bought LTC around this vital support level choose to double their positions, Litecoin price could enter an early recovery above $90 as predicted.
But on the other hand, if this key support level gives way, the market-wide consolidation phase could see LTC price spiral towards $75.
Disclaimer: This content is informational and should not be considered financial advice. The opinions expressed in this article may include the personal opinions of the author and do not reflect the opinion of The Crypto Basic. Readers are encouraged to do thorough research before making any investment decisions. Crypto Basic is not responsible for any financial losses.
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