Litecoin woke up from a month-long rest to follow the basic belief in the market. The price of LTC broke above the $200 resistance, only to drop with the crypto market flash crash.
At the time of composing, Litecoin trades at $181 with a 17.31% loss in the everyday chart.
The market seems to be reacting to the events triggered by El Salvador making Bitcoin legal tender. Whales might have utilized the bullish belief to lower the rates, set off liquidations, and got in brand-new positions.
Despite the crash, Analyst Ali Martinez believes Litecoin could reclaim its bullish momentum. Since the start of August, the variety of distinct addresses that signed up with the network reached a greater high, the expert stated.
As seen below, this metric stood at 220,000 new addresses created on September 6th alone. The Number of New Addresses from Glassnode works to determine the variety of users with fresh capital entering into LTC and “could be interpreted as a sign of optimism”, Martinez stated.
In addition, large investors went on a “buying spree” with the number of addresses holding 10,000 to 100,000 adding over 720,000 LTC in the past 30-months. This accompanies the boost in the rate of Litecoin, as seen listed below.
Further data provided by IntoTheBlock records around 170,000 addresses that bought 3 million Litecoin when the price was at $222. Martinez thinks this is the next significant resistance, LTC’s rate need to recuperate and increase above it to press into previous highs.
Support is bigger than resistance in terms of volume. Still, rates need to slice through $222 to advance even more.
Litecoin, Solana, Polkadot, Follow The Bearish Trend
Almost no altcoin in the top 20 by market cap has been able to hold its gains. Litecoin is among the worst-performing in the previous day, followed by Internet Computer (ICP) with a 23% loss, Polkadot (DOT) with a 17.3% loss, Cardano (ADA) with a 16.6% loss.
These altcoins have shown resilience to previous downside trends. Only Solana (SOL) records a 10.7% revenue in the everyday chart on the back of the development of its environment.
In the short term, Bitcoin could determine the fate of the entire market. Litecoin shows strong principles for a healing, however BTC losing crucial assistance at $43,000, might possibly activate another leg down to its previous variety around the high levels of $30,000.
