Aaryamann Shrivastava
FXStreet
- The overall average balance on every Litecoin address fell to $507, levels last visited back in April 2017.
- Litecoin on the chart has been virtually unmoved for almost four months now, trading at $52.9.
- Litecoin’s low correlation with Bitcoin opens the altcoin up to the possibility of a rally if Bitcoin concedes to the market’s fears.
“Silver to Bitcoin’s Gold” has been Litecoin’s identity since its inception, and rightfully so since it is truly no different than Bitcoin in any way except that it is not as well known as the king coin.
Regardless, Litecoin has achieved sustainability in a unique way which is how it manages to draw users towards itself. Except now, these investors might begin second-guessing their decisions.
Litecoin investors losing money
Usually, individual address analysis reveals the investors’ reality highlighting the overall profit loss ratio. But the average balance shows the network’s reality and vested monrtary interests.. By dividing the market cap by the number of addresses, we can see how much each address has on average and in the case of Litecoin, that figure stands at $507.10.
Falling since May’s all-time high at $7,397, the lack of recovery at LTC’s end has resulted in the average falling by 93.1%. This figure is also the lowest average balance recorded by Litecoin since April 2017, placing it at a 5-year low.
Litecoin investors’ average balance
On the charts, LTC has been moving sideways with minimal fluctuations since the beginning of June. This lack of growth has caused significant losses to investors.
The situation is likely only going to get worse since price indicators signal a price drawdown on the way. The candlesticks are below the 50-, 100- and 200-day Simple Moving Averages, and the Parabolic SAR’s (white dots) presence above the candlesticks highlights an active downtrend.
Litecoin 24-hour price chart
Room to escape?
While rare, Litecoin at the moment is sharing a very low correlation with Bitcoin, and this is its window of escaping the bears’ clutches.
If Bitcoin sticks to the bearish market conditions, LTC could end up finding some bullishness. But if LTC rises after the correlation return closer to 1, the efforts will be in vain.
Litecoin correlation to Bitcoin
The next week will be crucial in this sense for Litecoin investors.
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. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended Content
Editors’ Picks
Bitcoin reaches new highs near $90,000, on-chain data show chances of pullback
Bitcoin hit a new all-time high of $89,900 on Tuesday before easing to around $86,000, following a 30% surge since November 5. Technical indicators suggest the rally may be overstretched, with a potential corrective pullback ahead.
GIGA investor loses $6M to phishing scam via fake Zoom link
On Monday, a Gigachad (GIGA) investor lost $6.09 million due to a phishing attack involving a fake Zoom link. Crypto investigation firm Scam Sniffer declared the scam that led the victim to a malicious site, compromising their wallet.
Tron, Avalanche and Uniswap: Double-digit gains on the cards, technical indicators show
Tron is breaking above an ascending triangle formation on Tuesday, signaling a potential rally continuation. While AVAX and UNI are retesting their crucial support level — if supported, this suggests an upside move — all three altcoins look poised for double-digit gains as the crypto rally continues.
BNB: Bullish technical pattern validated, eyes all-time high
Binance Coin trades slightly down on Tuesday after breaking above an ascending triangle formation on the weekly chart, following a 12.5% rally last week. The technical outlook suggests a bullish breakout pattern and continuation of the rally, with a target set for a new all-time high of $825.
Bitcoin: Further upside likely after hitting new all-time high
Bitcoin hit a fresh high of $76,849 on Thursday as crypto-friendly candidate Donald Trump won the US presidential election. Institutional demand returned with the highest single-day inflow on Thursday since the ETFs’ launch in January.
Best Forex Brokers with Low Spreads
VERIFIED Low spreads are crucial for reducing trading costs. Explore top Forex brokers offering competitive spreads and high leverage. Compare options for EUR/USD, GBP/USD, USD/JPY, and Gold.