Litecoin (LTC) has risen in the last 24 hours after finding support at the intraday low of $77.95. The current price is $79.30 which has shown a 1.19% increase, so the market is slightly on the rise.
Litecoin market capitalization has risen by 1.20% to about $5.919 billion. This increase in market cap corresponds with the price rise, indicating a positive flow of funds into Litecoin.
Source: CoinMarketCap
Nevertheless, the trading volume has been reduced by 10. 00% at $354.43 million. The volume-to-market cap ratio is at 5.95%, which sometimes indicates that there is less buying pressure supporting the price increase, although it may also mean that volume lags price movements in a bullish market.
The intraday movement of Litecoin depicts a rebound from a low of $78.40, reaching near $80 and then hovering around $79.30. However, the current situation in terms of trading volume can mean that the market has less selling pressure and can easily move up.
Lower volume can also indicate less strength of the current trend. The rebound from the intraday low shows buyers at these levels, which is a sign of bullish market fundamentals.
LTC 4-hour chart (source: TradingView)
For the past week, Litecoin has been bearish, with a 5.22% decline, while within the past one month, it has shed 1.66%. However, a recent 2% increase suggests that there might be a revival of the bullish outlook. This price has ranged from $77.25 to $85.55 since the mid of April, indicating that it is still in the consolidation zone.
There is a possibility of a Death Cross in 1D time frame where 50 EMA is about to cross below 200 EMA, which is considered to be a weak price action. On the other hand, the Relative Strength Index (RSI) shows that there is a high likelihood of bullish convergence; therefore, the market is somewhat uncertain
Network Activity and Broader Implications
Litecoin has seen a rise in network activity, with the number of unique addresses increasing from 345,000 in May to over 700,000 in June. This increase in active addresses could be seen as an increase in traffic and, therefore, interest of users, which can contribute to the price changes. Litecoin’s network has been quite busy, and in some metrics, it is even busier than Bitcoin and Ethereum.
However, the price has not really changed much and still hovers around the $80 mark, even with the increase in trading volume.
As of now, the Fear & Greed Index for Litecoin is in the ‘Greed’ territory at 68%, which means that traders and investors are accumulating coins, which usually leads to price increases.
However, the derivatives market indicates bearish pressure with trading volume shrinking by 8.19% to $315.95 million. Open interest has gone up by 2..56% to $322.94 million, which means more people are coming into the market and putting up new money, probably for the purpose of speculation.
