“Slowly but surely” is an old saying and it still applies to so many things. When it comes to the cryptocurrency market, many people often associate it with Litecoin. However, with its impressive rallies and price movements, “digital silver” has challenged the notion of delay.
Litecoin has made some gains for investors. Although it wasn’t affected by the flash crash a few days ago, it fell 21%.
However, as consolidation hits the market, there are some positive signs that give LTC investors and owners hope. So can Litecoin get stronger from this consolidation?
Accelerated growth with a focus on development
The shift in market dynamics and growing customer demand related to smart contracts and NFTs have led Litecoin to release OmniLite, a decentralized platform for creating tokens and smart assets Bitcoin magazine reported.
OmniLite, an open source platform dubbed the “Ethereum Killer”, will introduce smart contracts, DAOs, crypto assets and NFT functions on the Litecoin network.
In addition, Litecoin is also advancing on other growing fronts in the market. LTC’s implementation of MimbleWimble Extension Blocks (MWEB) is expected to make the network interchangeable and provide more privacy.
Strong activity in the chain
LTC’s on-chain activity has been quite heavy lately, with a steady increase in active addresses and daily active addresses. Despite the aforementioned flash crash, the network still had around 390,000 addresses at the time of going to press. In fact, its ATH is around 485,000, which is currently much larger than that of ETH.
In addition, according to Cointelegraph, the moving averages (MAs) of Litecoin’s active addresses are still in an uptrend and on the verge of flipping Ethereum. report by Santiment. Bitcoin is still leading, however. Interestingly, due to the high fees charged by ETH, LTC also competes with Ethereum’s daily activity.
Active 24-hour addresses for Bitcoin, Ethereum and Litecoin | Source: Santiment
On the contrary, LTC’s real profit / loss has decreased quite sharply. However, it could indicate that inexperienced investors are leaving the market. The 30-day MVRV (Market vs. Real) also suggests that the recent decline could be a local low as the indicator is mostly neutral. This could do the LTC price good in the near future.
4 hour frame LTC price chart | Source: Tradingview
The higher lows on the 4-hour chart show that LTC price is rising as the broader market is consolidating.
All of the above factors indicate the recovery potential of LTC. However, to hit the May high, LTC will need support from long-term investors and whales. When that happens, maybe it is time to talk about flippening.
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According to AMBCrypto