Litecoin is surging but here’s why there’s so much more to the price rise

High transaction count supported the high number of new addresses
  • In five days, new addresses have almost doubled
  • Such high numbers were seen last on 11 May, when LTC’s was $410.05
  • LTC and its Hodlers are showing strength

The past fortnight saw most market altcoins rallying on the back of decent on-chain activity over the past fortnight. Although most of the cryptos surged as expected, the day belonged to Litecoin, which surprised many with its price gains, but the general growth from an on-chain perspective.

These numbers paint a bullish picture. 

Litecoin, until last news, was holding on stubbornly to its weekly gains of almost 6%. However, following the last all-time high, the cryptocoin was down by 66% in three months. Yet, it seemed to register a one-month ROI of +5.74% and a yearly ROI of +146.05%. 

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A peculiar spike in new addresses seen for Litecoin on 5 August has stirred the hornets’ nest. New addresses have almost doubled in five days, and such high numbers were seen last on 11 May, around the time of LTC’s high of $410.05.

Source: Glassnode

A high transaction count supported the high number of new addresses, the former hitting a monthly high. What is the reason for the sudden surge in new addresses? Experts put forward the expectations around the MimbleWimble Extension Blocks (MWEB) upgrade that was in the news recently. The updates are due by the end of 2021, as per developer David Burkett. The anticipation of the update might have woken up the community.

Litecoin Hodlers gaining strength

Hodlers are an essential component when it comes to sustaining rallies. LTC was, however, not able to sustain its rally, at least over the last three months. However, this time, the rally is a bit different; there was a steep decline in LTC’s Liveliness, pushing the 5 August levels to levels last seen on 10 May (the day of LTC’s price ATH).

A decrease in Liveliness suggested that long-term holders are continuing to accumulate and HODL. It also implied that strong hands are getting stronger. But are they?

Source: Glassnode

LTC and its Hodlers are showing strength. However, long-term holders did not add to its ATH in metrics, but short-term cruisers (addresses holding from one month to a year) are the ones that have been accumulating.

The slow and steady rise in cruisers from May to August highlights the role of these investors in this rally.

Source: IntoTheBlock

So, is LTC on a path to recover lost ground?

A coarse look at the metrics and price tops might seem like a pleasant situation for Litecoin. However, there aren’t any radical hikes at the moment. Further, metrics like Liveliness and New Addresses see their tops (equivalent to the May tops) at a price level that is 65% down from its ATH is a somewhat perturbing factor.

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Steve Anderrson
Steve Anderson is an Australian crypto enthusiast. He is a specialist in management and trading for over 5 years. Steve has worked as a crypto trader, he loves learning about decentralisation, understanding the true potential of the blockchain.

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