The downward trend of Litecoin (LTC) has started to lose momentum, with a decrease of 4% over the past three days. Currently, LTC is testing the critical support level at $67. This support level holds significance, as a breach below it might trigger additional selling pressure.
Nevertheless, if the positive indicators and metrics persist, a successful recovery could be in the cards.
Is Litecoin Poised for a Rebound?
The accumulation of large holdings in Litecoin has been increasing. Based on CryptoCrypto’s analysis of Santiment data, major investors have been building positions, potentially anticipating a shift in market direction.
Typically, this kind of accumulation hints at the confidence of these significant players that Litecoin has either hit a bottom or that the current prices present a promising buying opportunity.
Source: Santiment
Encouraging Rise in Active Addresses
Another encouraging sign for Litecoin is the uptick in active addresses. Over the past 24 hours alone, there has been a 2% increase in active addresses, indicating a growth in user activity within the network.
This surge could anticipate a phase of price stabilization or recovery, with a higher number of market participants engaging in Litecoin transactions, signaling renewed demand for the asset.
Source: IntoTheBlock
Profitability Status of Litecoin Holders
Despite these positive developments, only 28% of Litecoin holders are currently in profit. This suggests that a majority of them bought Litecoin at higher price levels and are still waiting for a market reversal.
This situation adds complexity to the ongoing price action, especially if the $67 support level remains intact or leads to further losses upon breakdown.
Source: IntoTheBlock
The short-term trajectory of Litecoin heavily relies on whether it can sustain levels above $67. Big players are showing interest, and active addresses are on the rise.
Nonetheless, many investors are seeing losses. The upcoming days will prove crucial in determining whether LTC can stage a comeback or if the downward momentum will persist.