Litecoin: Why relying solely on NFT growth could spell disaster for LTC investors
Good news came too Litecoin [LTC] The NFT ecosystem as it saw growth in recent days. Santiment’s data revealed that not only did LTC’s total NFT trades see an uptick, but USD NFT trade volumes also increased.
This development was valid when LiteVerse, Litecoin’s first NFT marketplace, announced a partnership with Antpool. LiteVerse is an NFT marketplace that uses OmniLite to create NFTs with low fees.
Partnership announcement with ltcLABS
(@AntPoolofficial x @LTCFoundation) is official!🔥#Litecoin #LTC #LTCFAM #Crypto #NFT #NFTs #NFT community #dogecoin #doge #ElonMusk #SolanaNFT #OpenSeaNFT #ltcLabs $LTC pic.twitter.com/Dmkfht2uBh— LiteVerse: NFT Marketplace (@theliteverse) 1 November 2022
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Here is AMBCryptos Litecoin price prediction [LTC] for 2023-2024
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Despite growth in the NFT space, things did not look too good on LTC’s daily chart. This was because LTC, after witnessing a long price rally, fell by more than 2% in the last seven days. Furthermore, at press time, LTC was trade to $55.05 with a market capitalization of over $3.94 billion.
Investors may have to cross their fingers and hope for the best as several of LTC’s on-chain calculations revealed the possibility of a price drop.
Caution is advised
Litecoin‘s rate, after registering a spike, dropped significantly on October 31. This was a bearish signal as it indicated that the coin was used in transactions less frequently within a set time frame. Furthermore, LTC’s daily active addresses also decreased in October, suggesting a lower number of users active on the network.
Source: Sentiment
Still, there were some things that worked LTChis favor. For example, LTC’s development activity increased. This was a positive sign for a blockchain. Also, LTC continued to gain interest from the derivatives market as the Binance funding rate was consistently high.
Source: Sentiment
The bears are back in action
A look at LTC‘s daily chart suggested that buyers saw an advantage in the market for a week. However, sellers had braced up as several market indicators revealed the chances of a downturn.
LTC’s Relative Strength Index (RSI) rested just above the neutral position. Chaikin Money Flow (CMF) registered a downtick and went below the neutral mark, which was a bearish signal. Also, the Moving Average Convergence Divergence (MAC) showed the possibility of a bearish crossover soon.
Interestingly, the 20-day exponential moving average (EMA) was in a battle with the 50-day EMA, giving some hope of a price rally.
Source: TradingView
