Advertisement
Advertisement

Litecoin Price Forecast: LTC Eyes $100 Rebound as Daily Transactions Surge 500%

By:
Ibrahim Ajibade
Updated: Apr 13, 2024, 17:13 GMT+00:00

Key Points:

  • Litecoin (LTC) price dipped below $85 on April 11, tumbling 25% from its yearly peak of $112.70 recorded on April 1.
  • Average Transaction size on the Litecoin network has doubled in 2-weeks showing intense whale activity.
  • Historical accumulation trends suggest that the $95 territory poses significant resistance.
Litecoin (LTC) price forecast

In this article:

Litecoin (LTC) price prodded back above $85 on April 13, after tumbling 13% during a frenetic Friday free-fall that saw over $170 billion wiped off the global crypto market capitalization.

Litecoin Price Forecast: LTC Eyes $100 Rebound as Daily Transactions Grow 500%

Vital on-chain signals suggest market demand for Litecoin could remain steady in the coming days. Is LTC price set make an early rebound above $100 or will the bears push for more downside?

Average Transaction size on the Litecoin Network has grown 500% in 2024

Litecoin price sank 13% on Friday as a wave of $850 million liquidations swept across the crypto markets. According to FXEmpire reports, the crypto market dip was largely attributed to bearish headwind from lackluster earnings reports from US Banks and fears of escalating conflict in the Middle East.

While LTC price was evidently, adversely impacted by this frenetic market crash on April 11, on-chain data shows that Litecoin network fundamentals have not suffered significant deterioration.

On April 1, less than two weeks before the crash, LTC price had surged above $110  milestone for the first time since its last Halving event in August 2023.

In fact, some of the main bullish catalysts that drove LTC price rally to the 8-month peak of $112.70 still remain in play.

Indicating this, IntoTheBlock chart below, tracks average size of all transactions carried out on the Litecoin network daily.

Litecoin (LTC) Average Transaction Size | Jan - April 2024 | Source: IntoTheBlock
Litecoin (LTC) Average Transaction Size | Jan – April 2024 | Source: IntoTheBlock

The latest readings shows that LTC Average Transaction Size has been on a steady rise since the start of 2024. As seen above, the average transaction size for Jan 1 was 43.7 LTC.

That figure has grown to hit a yearly peak of 232 LTC April 3.  And despite Friday’s market dip, the average transaction size on the network has not declined significantly, trending at 210 LTC on April 11.

Essentially this shows that the average transaction has grown by over 500% compared to the figures recorded on Jan 1, and nearly doubling in the last two weeks.

A prolonged growth in Average Transaction size on the Litecoin network can be taken as a bullish signal for a few reasons.

  • Whale activity: Firstly, its signals intense whale activity. And more deep-pocketed investors carry out transactions on a daily basis, it increases the daily average.
  • Deepening Adoption: Also, larger transactions may reflect greater usage of LTC for various purposes, such as investments, payments, and peer-to-peer transfers, thanks its it low fees and high scalability.

These factors put Litecoin in pole position to gain more market share when the market enters a recovery phase, especially as rival Layer-1 altcoins like Solana (SOL) are currently battling network congestion and outages.

Litecoin (LTC) Price Forecast: Bulls to defend $85 Support

Litecoin price has gained 18% year-to-date- while the average transaction size has grown 500%. This blistering growth organic demand especially among large investors suggest that Litecoin price will find sufficient buyers to hold the $85 support in the coming days.

IntoTheBlock’s Global In/Out Money chart which groups all existing Litecoin investors according to their entry prices also supports this stance.

As seen below, there’s a large cluster of 1.1 million Litecoin addresses that acquired 10.6 million LTC at the maximum price of $84.27.

Litecoin (LTC) Price Forecast 
Litecoin (LTC) Price Forecast |GIOM data | Source: IntoTheBlock

If those holders make covering purchases to avoid slipping into net-loss positions, the bears will have a hard time forcing a downswing below $85.

But if the support buy-wall caves, Litecoin price could slide toward $79 before finding a more significant support territory.

In the event of an early market rebound, the $95 area will be the major resistance level to watch.

About the Author

Ibrahim Ajibade Ademolawa is a seasoned research analyst with a background in Commercial Banking and Web3 startups, specializing in DeFi and TradFi analysis. He holds a B.A. in Economics and is pursuing an MSc in Blockchain.

Did you find this article useful?

Advertisement