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Litecoin (LTC) Price Dips 8%, Is it a Buying Opportunity ?

source-logo  thecryptobasic.com 29 May 2024 17:59, UTC

Litecoin price has tumbled 8% in the last 10 days as it fell to a daily timeframe low of $82.57 on May 29, but as new entrant keep entering the market, LTC could be on the verge of major rebound.

Litecoin Price Dips 8% After Ethereum ETF Frenzy

The announcement of the imminent approval of Ethereum ETFs on Monday, May 20, initially sparked a bullish surge in the cryptocurrency markets. However, the excitement began to wane following the SEC’s official approval on May 23, leading the global crypto market into a consolidation phase.

Since May 21, projects such as Litecoin (LTC) have faced challenges in gaining momentum. Over the past week, investors have shown a marked preference for ETH and other tokens within the Ethereum DeFi ecosystem.

Litecoin Price Action LTCUSD | TradingView

As illustrated in the TradingView chart above, the price of LTC has decreased by 8% between May 21 and May 29.

In anticipation of the inflow of funds into Ethereum ETFs, which could still take weeks or even months to go live, investors are deploying diverse strategies to profit from the ongoing crypto market consolidation phase.

New Investors Create 400,00 New LTC Wallets After ETH ETF Launch

On-chain data shows that an unusually high number of new wallets have been created have Litecoin network in the last few days, signalling that new entrant are entering the LTC markets, likely capitalizing on the recent LTC price dip.

Santiment’s Total Amount of Holders chart depicted below monitors daily changes in the total number of funded wallet addresses on a cryptocurrency network. An increase in active wallets suggests that the number of holders joining the network has exceeded those exiting their positions and vice verse.

Litecoin Price vs LTC Total Number of Holders

A large number of new entrants have been spotted aping into the Litecoin network this week, amid the 8% price correction.

As seen in the chart above, there were only 8.17 million active LTC wallets as of May 21. But that figure has now ballooned to 8.21 million LTC wallets at the time of writing on May 29, reflecting a rapid entry of 300,000 new Litecoin wallets in the past seven days.

This signal suggests the there’s an overwhelming positive sentiment within Litecoin ecosystem despite the recent price dip. And if this vital network growth trend persists Litecoin price could experience major rebound in the days ahead.

LTC Price Forecast: Imminent Rebound to $90

Litecoin price is dropped 8% within the weekly timeframe, but the influx of 300,000 new LTC wallets puts BCH price in prime position for a major rebound toward the $90 level.

With LTC currently trading at $83.76, the Bollinger band technical indicators show that bulls are still holding firm above the critical support level at the 20-day SMA price of $83.59.

Litecoin LTC Price Forecast | TradingView

If holders that bought LTC around that vital support level opt to double-down on their positions, Litecoin price could enter an early rebound above $90 as predicted.

But on the flip side, if that key support level give way, the market-wide consolidation phase could send LTC price spiralling toward $75.