Litecoin: Will 2024 be a good year for LTC’s traders

• There was a rally in Litecoin’s transaction depend because the yr started.
• LTC could also be due for a decline, as latest worth rally appears to not be backed by any actual demand. 

Litecoin [LTC] has kicked off the yr with a surge in transaction depend, suggesting renewed curiosity and exercise on the community, IntoTheBlock famous in a latest publish on X (previously Twitter).

Litecoin began the yr robust, processing over 6.3 million transactions because the 1st of January.
https://t.co/k1Oem7fVAg pic.twitter.com/WIXroezdaL

— IntoTheBlock (@intotheblock) January 10, 2024

In accordance with the on-chain knowledge supplier, Litecoin has processed over 6.3 million transactions within the final 10 days. AMBCrypto discovered that the rise within the community’s transaction depend is attributable to an uptick in its energetic handle depend because the yr started.

Knowledge from Glassnode confirmed that since 4th January, the each day depend of distinctive addresses which might be energetic on Litecoin, both as a sender or receiver, has risen by 17%. 

Supply: Glassnode

Additionally, the surge in exercise pushed the community’s hashrate to its second-highest stage of 885.09 TH/s on tenth January, in accordance with knowledge from CoinWarz.

Because of the rise in person exercise, the yr has additionally been marked by a leap in transaction charges on Litecoin. Since 4th January, the overall quantity of charges paid to course of transactions on the chain each day has grown by 38%. 

Curiously, whereas Litecoin’s current customers have intensified exercise, there was a decline in new demand for the chain because the yr started. 

In accordance with knowledge from Glassnode, the each day variety of distinctive addresses that seem for the primary time in a transaction involving LTC on the community has dwindled by virtually 45% within the final 10 days.

For context, as of 1st January, 1.20 million new addresses have been created on Litecoin. By tenth January, it dropped to 688,000. 

Supply: Glassnode

LTC follows development

Whereas LTC’s worth has climbed in latest days, a better take a look at some key indicators steered that the surge could be fueled extra by Bitcoin ETF anticipation than real demand for the coin itself.

At press time, LTC traded at $70.72, rising by 8% within the final seven days. Following the BTC Spot ETF approval granted by the U.S. Securities and Alternate Fee, the coin’s worth has risen by 5% within the final 24 hours, in accordance with knowledge from CoinMarketCap.

Nonetheless, with its Superior Oscillator indicator returning inexperienced down-facing histogram bars, LTC could be poised to shed these positive aspects. 

When this indicator has green-down dealing with bars, it usually signifies a weakening bullish development. Which means that whereas the worth should be rising, the speed of enhance is slowing down, which may very well be an indication of an upcoming development reversal.

Learn Litecoin’s [LTC] Value Prediction 2023-24

Likewise, there has additionally been a steep decline in LTC accumulation amongst each day merchants. The coin’s Cash Move Index (MFI) rested under its heart line and in a downtrend on the time of writing. 

This steered that promoting strain exceeded shopping for strain, placing downward strain on the alt’s worth. 

Supply: TradingView