- Litecoin has maintained healthy transaction growth despite the downward trend.
- However, its low sentiment was a testament to the fact that LTC may not have a strong recovery.
On December 19, the Litecoin Foundation announced that it had processed more than 1 million transactions in the past 10 days. This means that the blockchain has processed a total of 138 million transactions, which was a significant milestone.
– Litecoin Foundation ⚡️ (LTCFoundation) December 19, 2022
Read Litecoins [LTC] Price forecast for 2023-24
Litecoin [LTC] It was among the best performing cryptocurrencies in November. Its performance has attracted more attention as it has withstood the downside at a time when the most popular cryptocurrencies continue to crash. But what goes up must go down, and this has been true of LTC since early December.
The main reason behind its rise was that a large number of investors continued to trade the cryptocurrency despite its downside this month. One can also see it in relation to adoption and vision. If LTC continues to gain significant visibility, this could confirm the potential for higher volatility.
Is Litecoin’s Bullish Rebound On The Cards?
High volatility has made Litecoin ideal for traders looking for profits in shorter timeframes. It also means that LTC could swing to the downside which it has achieved so far this month. Its press-time price of $65.08 represents a 23% drop from its monthly high.
Litecoin price action earlier this month identified a potential short trading opportunity. Fast forward to the time of writing, and this opportunity has already appeared, thanks to the bearish price action of LTC. Now the big question is, what comes next?
The RSI for LTC was already showing signs of a potential pivot as bearish momentum weakened. This was evident in the price action which posted some upside.
This reflects an increase in volume over the past two days to press time, as well as a sharp rise in speed over the past three days for the same period.
How much Litecoin can you get for 1 dollar?
These observations were also accompanied by an increase in active addresses over the past 24 hours. This indicates that there may be internal demand as bears face exhaustion. Despite these remarks possibly favoring the bulls, the weighted sentiment for LTC remained subdued.
A declining sentiment could be a sign that the market may not be ready for a strong recovery. In other words, investors who expect a strong recovery in the near term may be disappointed.