Litecoin network adds 300,000 addresses in a week, ahead of halving, Litecoin price to rally too?
|- Litecoin price is trading below the $80 mark, on the verge of being oversold.
- The network has gained more than 300,000 new addresses in the first week of May.
- The next Litecoin halving is scheduled for August 12 tentatively, and such events have been synonymous with price rises.
Litecoin price, despite having a major event coming up in about three months, is still mostly following the broader market cues. However, the altcoin’s investors have been growing bullish by the day, and the same is visible in their participation, which is currently far higher than the average.
Litecoin price declines, but investors grow
Litecoin price in the last three days has noted a decrease of more than 12%, which pushed the altcoin below the $80 mark to bring LTC to $78 at the time of writing. Following Bitcoin’s lead, the altcoin has hit a monthly low, but its investors seem to be motivated not by the price action but by something else.
LTC/USD 1-day chart
In the first week of May, the Litecoin network noted the addition of nearly 300,000 new addresses that hold some amount of LTC. This is a nearly 300% jump from the average weekly rate, as throughout the last month, the network only added a total of 300,000 addresses, bringing the weekly average to 75,000.
Litecoin addresses holding a balance
The total addresses holding a balance now stand at 7.56 million, and the possibility of the same rising further is high. This is because the “silver to Bitcoin’s gold” is set to go through its third halving event, wherein the reward for validating a block will be slashed by 50% from 12.5 LTC to 6.25 LTC.
Litecoin halving events
These events have been synonymous with price rises, as observed in the past in August 2015 and August 2019. Thus by the looks of it, crypto investors are preparing to bank on this potential and make profits by joining the network.
This could prove to be bullish for the price action as well, as investors could likely accumulate further, given Litecoin price is low right now. As it is, the Relative Strength Index (RSI) is nearing the oversold zone, below 30.0. A move into the zone followed by an exit would confirm a reversal in trend, triggering a recovery rally.
If this situation plays out over the next couple of days, Litecoin price might be in for a rally.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.