- Litecoin bulls deliver a massive unexpected rally after outperforming their peers
- LTC’s market value increased by a whopping 10% in the last 24 hours
Litecoin was seen making headlines on November 23 after delivering an impressive bullish performance that saw it rise by approximately 35% over the past two days. The cryptocurrency managed to outperform most of the top cryptocurrencies this month. Furthermore, LTC was among the few coins that have managed to withstand the downside.
Read about Litecoin [LTC] price forecast 2023-2024
For perspective, none of the top 10 coins by market cap have pushed above a 10% gain in the last 24 hours. Meanwhile, Litecoin managed to rally by more than 18% in the same period, making it the top cryptocurrency.
Among the reasons behind Litecoin’s strong demand was the growth it experienced especially after being added to BitPay. It had the second highest number of payments on BitPay after Bitcoin in the last five months. This confirmed strong adoption despite bearish market conditions.
Litecoin was added to the largest crypto trading professor, @BitPay*after* most other coins on it were.
Litecoin now takes significant transaction market share from all of them, after Bitcoin. pic.twitter.com/eUNK8X5HJ8
— Al Ⓜ️🕸 (@lite_hause) 23 November 2022
In addition to commanding a larger share of BitPay transactions, Litecoin’s hash rate has been on an upward trajectory. This has been the case for the past three years and underscored a faster and more efficient state of the Litecoin network.
These observations were strong enough to trigger positive sentiment among investors, leading to more demand. LTC managed to secure the #13 spot among the top cryptocurrencies by market cap, surpassing Shiba Inu.
Litecoin price action
LTC was trading at $78 at press time, down slightly from its 24-hour high of $82.77. Why was this important? Well, it underscored the return of selling pressure, especially since Litecoin’s recent upside pushed it into overbought territory.
Litecoin’s upside over the past two days was supported by a strong increase in daily volume, almost to weekly highs. This confirmed that a significant amount of LTC was recently bought, resulting in a strong upside.
A look at the activity in the chain showed that there was indeed an increase in the number of active addresses. A confirmation of interest in the cryptocurrency in the last 48 hours. Despite this, an interesting observation can help to measure where the demand came from.
The number of active addresses in the ongoing LTC rally was significantly lower than it was in the second week of November. This suggested that there was not much retail activity. In other words, whale activity was largely responsible for the upside.
LTC’s supply distribution also confirmed that addresses with over 1 million LTC coins have accumulated over the past two days. However, addresses with between 10,000 and 100,000 have trimmed the balance.
What do the bulls have to say
At the time of writing, there was already some sales pressure from some of the top addresses. LTC failed to sustain the current sentiment, which could lead to a significant retracement. On the other hand, if market sentiment favors the bulls, Litecoin could hold on to recent gains.