Why is Litecoin (LTC)Price Primed for a Massive Bull Cycle?
The post Why is Litecoin (LTC)Price Primed for a Massive Bull Cycle? appeared first on Coinpedia Fintech News
Litecoin (LTC) network, a veteran blockchain secured via the legendary proof-of-work (PoW) consensus mechanism, remained a favorite project among more investors. The mid-cap altcoin, with a fully diluted valuation of about $5.8 billion and a daily average traded volume of around $314 million, has more than 9.2 million on-chain holders.
Amid the confirmed macro crypto bull run, the Litecoin network has attracted more speculative investors. Moreover, the Litecoin network offers deep liquidity for all investors in addition to cheaper and faster transactions compared to its rivals led by Bitcoin (BTC).
Litecoin Whales’ Activity on the Rise
Litecoin processes $2.85 billion in transactions over $100k daily (avg), over 50% of its market cap.
This is more than most Layer 1s. For example, Dogecoin sees $590 million in large transactions, despite having roughly 3x Litecoin's market cap.
This suggests significant… pic.twitter.com/YpPKIsEMuO
— IntoTheBlock (@intotheblock) July 12, 2024
According to on-chain data analysis provided by IntoTheBlock, the Litecoin network processes nearly $3 billion in transactions valued at more than $100k per day, which is around 50 percent of its market value. Remarkably, the Litecoin network has outshined most of the layer one (L1) chains and even the top meme coin, Dogecoin (DOGE).
The rise in Litecoin’s network activity fueled by whale traders indicates rising demand amid its declining supply. Moreover, the Litecoin network has undertaken two halvings in the past six years, despite the underlying value consolidating in a macro triangular pattern.
LTC Price Prepares for Imminent Bullish Breakout
After a solid breakout of the falling Logarithmic trend earlier this year, Litecoin price has been retesting the support level around $58 in the recent past in preparation for a major bull cycle ahead.
The altcoin is well positioned to rally beyond its all-time high in this cycle after significantly underperforming in previous cycles. Moreover, Litecoin’s daily Relative Strength Index (RSI) has continued to hover around oversold levels in recent times.
Meanwhile, Litecoin price will significantly benefit from the highly anticipated altseason, which will be kickstarted by the inevitable reversal in Bitcoin dominance and the final approval of spot Ether ETFs.
