Litecoin has recently received a lot of attention for two key reasons. The first is the LTC20 standard, which has increased address activity. The second important reason is the excitement surrounding the imminent halving, which is expected to take place in August.
So far, the aforementioned reasons have increased Litecoin’s visibility, which has aided its price movement. In the last five days, for example, the price of LTC has been resilient to the downside.
This is in contrast to the performance of the main cryptocurrencies, which has continued to decline. Will Litecoin’s resistance to the fall last? The enthusiasm that has fueled LTC bulls in recent days will eventually wear off. However, this is not the sole cause for the cryptocurrency’s continued rise. Its price has been trading at a long-term support level, where investors are unlikely to sell. At the time of publication, Litecoin was trading at $80.95.
Although the current support for Litecoin appears to be holding up well, the halving is still more than two months away. This is enough time for the current impetus to fizzle. In other words, there is still a good chance of a push below support. The transaction volume of Litecoin now reflects a rise in trading activity in the last two days. Nonetheless, the recent euphoria appears to be fading, as evidenced by a decrease in daily active addresses.
The declining rate of daily active addresses suggests that Litecoin may see further price declines. As a result, it is critical to monitor what the whales are doing. So far, the supply distribution shows accumulation activity from addresses ranging from 1,000 to 100,000 LTC.
Higher whale classifications are still largely inert. These data could indicate that the market is currently looking for direction.
The possibility of Litecoin recovering the $100 price level is considerable, owing to bullish expectations ahead of the halving. On the network, Litecoin is well-positioned to benefit from increased network activity. Scaling may be the least of its concerns, as it is with Ethereum following the recent rise in on-chain activity. This is due to Litecoin’s use of the Lightning network, which is also used to aid scaling on the blockchain network.
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