Even if there are ups and downs in the price of a cryptocurrency, the overall momentum is usually positive, even if the market crashes. However, this is not the case with Litecoin.
The reason for the ‘fall of Litecoin’
Since its ATH in May, the altcoin has been trapped within the downtrend wedge, unable to break free.
It not only broke through it yesterday but also broke through the $100 mark, with no signs of recovery in sight.
The cause of this trend was an 8.88 percent drop in price on May 5, despite favorable developments the day before.
Gucci said earlier this week that it would take crypto payments and would accept ten cryptocurrencies, including Litecoin.
However, due to the widespread panic in the market, Litecoin was unable to leverage this announcement to begin a rebound and ultimately fell.
It’s simple to cause fear in the market when over 4.28 million people are losing money. Aside from that, since March 2020, this is the most Litecoin holders have lost owing to a lack of profit in over 26 months.
LTC is currently trading at $96.1, down 9.63 percent, which will only serve to upset its already disappointed investors.
As a result, investors have been reducing their Litecoin usage to a minimum, as evidenced by the network’s slowing velocity.
LTC isn’t moving as quickly as it was in March, with daily transactions totaling just $1.53 billion.
Given that such a massive statement failed to elicit a good response from Litecoin, the altcoin’s sole hope is its king, Bitcoin.
Although Bitcoin plummeted 7% the day before yesterday to trade at $36k, it is the only coin that can resurrect a rise in Litecoin because the coin is known to follow BTC’s direction.
With a 0.96 connection with Bitcoin, Litecoin investors should keep a watch on the Bitcoin chart rather than the LTC chart right now, as soon the former rises, the latter will follow.