Can Litecoin [LTC] recover on the back of demand amid strong headwinds

Litecoin, though it could not have been the desire of each investor, it has nonetheless been one of the altcoins in the market with the highest charge of adoption.

And since that’s all Litecoin has to supply, given the absence of DeFi capabilities, adoption is exactly what’s going to save the coin from vanishing out of existence.

Litecoin sees white once more

Usually, to connote a fall in value, it’s mentioned that the coin is seeing pink, however Litecoin is seeing white as a result of the current fall in value has thrown the altcoin back into the downtrend that has been tormenting the coin for over 11 months now.

After a failed escape in November, Litecoin tried one other one once more final month. For the most half, it appeared to have been profitable as LTC in the similar length examined the crucial stage of $123 as help.

Litecoin value motion | Source: TradingView – AMBCrypto

However, the 9% plunge of 6 April resulted in a return to this downtrend wedge which is narrowing with each passing day.

At the time of writing, LTC has examined the higher development line as resistance, but when it doesn’t escape quickly, it may very well be testing the decrease development line as help at $102.59.

Now a restoration from that is tough since the value indicators are actually in opposition to the risk of that occuring. Moreover, even buyers would possibly plan on pulling themselves away from the market.

Litecoin has not been altering arms too often lately, as verified by the velocity of the asset.

Litecoin velocity | Source: Santiment – AMBCrypto

This might also be as a result of for the previous few days, on-chain transactions in loss have been exceeding transactions in revenue. The market noticed an analogous sample when Litecoin was treading round the $103 mark at the starting of March.

Litecoin on-chain transactions in loss vs in revenue | Source: Santiment – AMBCrypto

Although the coin does share a excessive correlation (0.95) with Bitcoin, leaving the door open for a gradual restoration ought to the king coin not fall additional.

Litecoin’s correlation with Bitcoin | Source: Intotheblock – AMBCrypto

As it’s, LTC has already misplaced the help of each the 50-day SMA (blue) and the 100-day SMA (pink), and in the event that they proceed hovering above the candlesticks for for much longer, Litecoin would possibly find yourself falling via the downtrend wedge, decrease development line. (ref. Litecoin Price Action picture)

The following week shall be essential in defining that, as the coin may additionally obtain help from the a number of vital ecosystem developments it has seen in the previous few days.

Ranging from Robinhood’s 20 million crypto wallets activation to the creation of the Cryptocurrency Research Lab from the Litecoin Foundation and the inclusion of Litecoin in the addition of 11 new, non-tradable CME CF Cryptocurrency Reference Rates and Real-time Indices, Litecoin actually has so much of demand in the market.

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About the Author: Daniel