Detailed LiteCoin analysis with Glassnode and BTC

2021年11月12日

Hello.
I believe in a rise of LiteCoin, and here I present the reasons.

Contextualization
Litecoin was the first major altcoin to be created after the emergence of Bitcoin, in order to reduce transaction costs.
Some analysts say it is outdated, as Bitcoin is already able to solve this problem through the Lightning Network.

However, it is noteworthy that the Lightning Network is not yet widely adopted.
Some exchanges and wallets are supportive, others are not.

Furthermore, although there are other cryptocurrencies with the same purpose, and which technologically might even be better (for transfer),
the fact is that there is still no definitive solution for this.
For example, some exchanges support Stellar Lumens (XLM) and some do not.

As LiteCoin is widely adopted by most exchanges, if the individual simply wants to make a transfer without paying a high fee, Litecoin ends up breaking that branch.
And in Glassnode's on-chain data, I see bullish data.
So I don't see a problem with holding Litecoin.

LTC/USD
On the weekly chart we can see an upward expanding wedge.
If the bullish cycle continues and the price breaks the last resistance of $400, the price will explode upwards with a possible high of ~500%.

LTC/BTC
On the graph against Bitcoin, we have a descending triangle.
If the price breaks up, the next resistance is at 50% of the Fibonacci retracement, with an approximate 50% gain potential in BTC.

Glassnode Analysis

1. Total USD Volume
The total amount of coins transferred on-chain. Only successful transfers are counted.
-> It reached the historical maximum in September/2021. He is about to retest that.

2. Number of New Addresses
The number of unique addresses that appeared for the first time in a transaction of the native coin in the network.
-> The value broke the historic high of January/2018, and since August/2021 it has been reaching new highs.

3. Number of Active Addresses
The number of unique addresses that were active in the network either as a sender or receiver.
Only addresses that were active in successful transactions are counted.
-> The value broke the historic high of January/2018, and since August/2021 it has been reaching new highs.

4. Price Drawdown from ATH
The percent drawdown of the asset's price from the previous all-time high.
-> When the value reaches the top, the whales are making considerable profit since the last support.
At that time comes the dump of achievements, and it's best to get out.
We haven't reached the top yet, so there's room for more climb.

Summary
Fundamentally speaking, Litecoin may not be the best payment method currency.
Bitcoin will sooner or later have solved the transaction cost issue.
However, while this does not happen, it still serves as a means of escaping high rates, because like it or not, it is widely adopted in several wallets and exchanges.
In addition, some ETFs and institutional players have a portion allocated in Litecoin. and sometimes altcoins go up more than Bitcoin.

Good winds!