Litecoin Price Analysis: Price movement remains sluggish, despite high network activity

The divergence could be foreshadowing a move up by LTC in the cryptocurrency markets. Litecoin’s MimbleWimble protocol is on track for a testnet …
  • Litecoin’s network activity is significantly high, despite low prices.
  • The divergence could be foreshadowing a move up by LTC in the cryptocurrency markets.
  • Litecoin’s MimbleWimble protocol is on track for a testnet launch this month.

Despite the recent drop in prices, Litecoin’s (LTC) network activity has continued to be significantly high. Data by Santiment shows that Litecoin has witnessed a three-month high in address activity divergence when compared to its current price level.

https://t.co/qDyuURZs8c

1) The often written off $LTC is showing a ~3-month high in address activity divergence vs. its current price level. #Litecoin, commonly known for leading the way before $BTC price surges, is currently +131% above its mean expected level at its present pic.twitter.com/n4ea58eaRA

— Santiment (@santimentfeed) September 8, 2020

As per Metcalfe’s law, the price of a coin or a token is generally dependent on the network activity. In Litecoin’s case, a divergence between daily active addresses and price could foreshadow LTC’s possible push in the cryptocurrency markets in the near future.

In a recent tweet, David Schwartz, Litecoin Foundation’s Project Director, used some stats to explain that Litecoin’s fundamentals are currently very strong.

Has the price drop affected #LTC‘s fundamentals?

Nope.

280 Thash/S

83k active wallets

40k trx

$50.58 median trx value

$7.8 mln sent per hour

All in the past 24 hrs

Its a currency, folks. People use it to pay for things.

— David Schwartz (aka – Dasch) (@DaddyCool1991) September 7, 2020

Furthermore, in his monthly MimbleWimble update, David Burkett noted that everything is on schedule for a testnet launch this month.

Everything is on track for a testnet release at the end of this month. I’m still figuring out a few final details, but I’ll share more information later this month about what the testnet will look like and how everyone can get involved.

LTC/USD daily chart

LTC/USD dialy chart

LTC/USD bulls failed at the $48.70 resistance line. The price has since dropped to $47.55 in the early hours of Friday and is presently sitting on top of the SMA 200 curve. The relative strength index is hovering horizontally around 39.39 and hasn’t dropped to the oversold territory, yet. As such, more price drop could be expected. However, can we expect any wild price swings? Not quite, as per the IOMAP.

LTC IOMAP

fxsoriginal

LTC is sandwiched between strong healthy and support levels. The price can only hover between $46.26-$48.

LTC/USD hourly chart

LTC/USD hourly chart

LTC/USD hourly chart failed at the $48.75 resistance line and has since charted five straight bearish sessions. In the process, the hourly price chart is trending in a downward channel formation. The MACD shows increasing bearish momentum, so overall sentiment in the hourly chart remains bearish.

Key levels

LTC/USD

Overview
Today last price47.7956
Today Daily Change-0.9125
Today Daily Change %-1.87
Today daily open48.7081
Trends
Daily SMA2055.1326
Daily SMA5056.3123
Daily SMA10050.043
Daily SMA20047.8375
Levels
Previous Daily High49.4809
Previous Daily Low47.8297
Previous Weekly High64.3919
Previous Weekly Low45.4339
Previous Monthly High68.9714
Previous Monthly Low51.615
Daily Fibonacci 38.2%48.8502
Daily Fibonacci 61.8%48.4605
Daily Pivot Point S147.8649
Daily Pivot Point S247.0217
Daily Pivot Point S346.2137
Daily Pivot Point R149.5161
Daily Pivot Point R250.3241
Daily Pivot Point R351.1673