Will the LTC Token Price Rebound as Network Activity Falls?
User activity on the Litecoin (LTC) network has declined over the past few days, reaching a 2023 low on Monday. The decline in network usage coincides with a drop in the price of the LTC token, which has plummeted 10% over the past week, falling below the key $100 mark.
These signs point to a loss of confidence in altcoins, and LTC is at risk of further losses.
Litecoin user demand is weak
On-chain data shows decline Litecoin’s User activity over the past four days. The number of unique addresses that completed at least one transaction on the Layer-1 network totaled 193,477 on Monday, the lowest single-day number since November 2023, according to BitInfoCharts.
The decline in daily active addresses indicates reduced user engagement and activity on the network. This downturn signals waning interest in the network and its native token, potentially impacting its value in the short term.
This has already played out Litecoin LTCwhich has lost 13% of its value in the past seven days. As of writing, the altcoin is trading at $98.63, below the key $100 price mark.
In addition to declining network activity, Weighted Sentiment for LTC It also remains negative, adding downward pressure on its price. As of this writing, the value is -0.45.
An asset’s weighted sentiment measures its overall positive or negative bias, taking into account both the number of social media mentions and the sentiment expressed in those mentions. When negative, it is a bearish signal as investors become increasingly skeptical of the coin’s near-term prospects. This prompted them to cut back on trading, exacerbating price declines.
LTC Price Prediction: Descending Triangle Confirms Fall
superior LTC/USD one-day chartthe altcoin is trading below the downtrend line. This pattern forms when an asset price consistently makes lower highs over time (indicating a downtrend). In this case, the overall market sentiment is bearish, with selling pressure outweighing buying pressure.
If LTC buying pressure weakens further, its price could extend its losses and head towards the $86.64 support.
However, this bearish outlook will be invalidated if buying activity resumes. In this case, LTC token price may break out of the downtrend line to reach $109.81.
Disclaimer
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