Litecoin’s downfall from the $100 milestone practically started a couple of days ago, on March 12, 2024, to be more specific. It retraced to the current value of $87.33 (at the time of writing) after exchanging hands for as high as $104 in the last 7 days. While that signifies a climb of 2.55% in the last week, inventors are unhappy about where LTC has finally landed.
Their acquisition was in the range of $94–$101. Meaning, it is only when the token goes back to $100 that investors actually consider taking profit back to their homes. The fall of 6.09% in the last 24 hours only paints a troublesome picture for Litecoin.
Reasons behind Litecoin’s recent price surge. Why didn’t it sustain?
One of the reasons why LTC is geared up for a higher value is because of the announcement about hosting PSBTs on Litecoin Core v0.21.3. The idea is to leverage Partial Signing Bitcoin Transactions as one of the key features. It has been architected to accommodate MWEB transaction components, wherein MWEB stands for MimbleWimble Extension Block.
Holders soon began transitioning their status from being mid-term holders to long-term holders, the latter often referred to as Holders. It rather demonstrates the strong confidence of LTC holders, but the fact that they lost the trading momentum downplayed the value to some extent. Also, several short-term holders began considering their shift to becoming medium-term holders. In other words, traders looked to become cruisers, and cruisers looked to become holders.
The value did not sustain the floor test of $100, as the momentum never laid the fundamental groundwork for higher demand. Instead, the focus was revised to retaining the tokens in portfolios. Now, the focus is to retain LTC in wallets until it hits $100. That will pave the way for a small profit margin, ideal for those who are willing to take profit back with them.
Chances for Litecoin (LTC) to bounce back again
The veteran in the altcoin space is poised to climb up the ladder eventually. All it has to do is demonstrate resilience and growth, something it has done in the past. A comparison with ETH better explains this. ETH has fallen by 4.16% in the previous seven days, while LTC has jumped by 2.14% during the same time window. LTC price prediction estimates that bullish momentum can help the token to at least touch the mark of $95 by the end of this year, that is, 2024.
Litecoin could ride the bull with optimistic developments like the one it announced the other day. A post on X by Litecoin highlighted that the network has processed a total of 233 million transactions till that date, out of which 27 million transactions have happened in 2024. For reference, there are still nine months left for 2024 to conclude, not counting March.
The Litecoin network just processed it’s 233 millionth transaction! 27 million of them have been in 2024!!! #Litecoin⚡️ $LTC pic.twitter.com/KTqL8n1NFB
— Litecoin (@litecoin) March 13, 2024
The community has expressed excitement about it. Many members have called it a huge achievement, while others have sought an LTC ETF product as soon as possible. Some members have raised doubts about LTC’s struggle despite this feat.
Processing a large number of transactions signifies that activities are not dead on the network. The higher the activity, the more likely it is to have a larger number of users who would ultimately want to have LTC in their portfolios.
The Relative Strength Index (RSI) was last seen rolling out mixed readings. It is below 50, putting a bearish sentiment on the table, but the community retains its stance of holding its LTC tokens for a long time. That could be because most of them are waiting for the token to retrace to $100 and fetch profits for them.
Future outlook of Litecoin: Why isn’t LTC going up?
A macro outlook of the crypto market itself has a downfall written all over the trading board. BTC, for one, has come back to ~$67,000 after rallying as high as ~$72,000. ETH has done the same after bagging a value of ~$3,900. Simply put, the fall of LTC could be a ripple effect of what the other tokens are going through—call it a moment’s weakness, for it could bounce back later at any time, subject to volatility and market sentiments.
Conclusion
The crypto market fluctuates every moment, and LTC is no different from other tokens. It is significantly down, exchanging hands at a value of less than $90, but it is soon to write off the altcoin veteran. It has been at $104 with no dubious expressions that it can reclaim that high once again. A transition within the holding sentiments could continue for a while.
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