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- 1 In December, LTC price increased by 7% and it reached a new milestone with 1 Million daily transactions
- 2 LTC price has been trading in a consolidation zone after the bears tightened their grip last year.
Litecoin, like Bitcoin, has an open-source architecture that enables miners to verify transactions and secure the network through proof-of-work. Both LTC and BTC can be mined, but an innovative Segregated Witness protocol reduces the likelihood of “orphaned” blocks.
Litecoin and its Working
Its blockchain handles transactions at four times the speed, allowing for swift settlement for businesses that embrace digital payments. However, this increased speed comes with trade-offs, as merchants can opt for more confirmations to enhance security.
To maintain Bitcoin’s long-term supply trajectory, Litecoin undergoes halving events at a faster pace, ensuring that available coins are depleted at the same time. With a maximum supply of 84 Million coins, Litecoin aims to achieve synchronous depletion alongside BTC.
Litecoin Hit Over 1 Million Daily Transactions in 2023 End
During December, Litecoin’s price increased by 7%, as the decentralized project saw growth in volume, active addresses, and daily transactions. In 2023, LTC reached a new milestone with 1 Million daily transactions, a record for the project.
Large wallet investors are actively moving in Litecoin, and whale transactions coincide with spikes in the Network Realized Profit/Loss metric, indicating that profit-taking activities of LTC holders do not influence Litecoin’s uptrend.
The news of Litecoin’s rising network activity could create excitement and potentially boost its performance. On December 1, LTC was traded at $71.54. On January 3, it dropped by 8.7% to $65.30. Two weeks later, it rose by 6.0% to $69.26.
LTC Price in a Deep Consolidation
LTC price has been trading in a sideways trend after the fall in August 2023. At press time, the LTC coin price is trading at the level of $65.5 after the bears pushed it below the 50-Day and the 150-Day EMA levels.
| Pivot | Classic | Fibonacci | Camarilla | Woodie |
| S3 | 50.350 | 61.900 | 69.630 | 55.480 |
| S2 | 61.900 | 66.310 | 70.690 | 61.740 |
| S1 | 67.350 | 69.030 | 71.750 | 67.030 |
| P | 73.450 | 73.450 | 73.450 | 73.290 |
| R1 | 78.900 | 77.860 | 73.870 | 78.580 |
| R2 | 85.000 | 80.580 | 74.930 | 84.840 |
| R3 | 96.550 | 85.000 | 75.990 | 90.140 |
The Relative Strength Index (RSI) is also showing a consolidation trend as the RSI line is hovering near the neutral zone of 50 The current support levels for LTC are $59.9 and $47.3. The resistance levels are $83.8 and $102.03. Therefore, a trend reversal is unlikely unless one of either side gives a breakout.
Summary
Litecoin is designed to have halving events at a faster pace than Bitcoin, aiming to achieve synchronous depletion alongside BTC. Large wallet investors are actively moving in Litecoin, and the price has been trading sideways after a fall in August 2023. It is unlikely that any trend reversal will come unless one of either side gives a breakout.
Technical Levels
- Support Levels: $59.9 and 47.3.
- Resistance Levels: $83.8 and 102.03
Disclaimer
The views and opinions stated by the author, or any people named in this article, are for informational purposes only. They do not establish financial, investment, or other advice. Investing in or trading in stocks, cryptos or related indexes comes with a risk of financial loss.
Anurag is working as a fundamental writer for The Coin Republic since 2021. He likes to exercise his curious muscles and research deep into a topic. Though he covers various aspects of the crypto industry, he is quite passionate about the Web3, NFTs, Gaming, and Metaverse, and envisions them as the future of the (digital) economy. A reader & writer at heart, he calls himself an “average guitar player” and a fun footballer.
