Led By Litecoin, Mid-Cap Altcoins Bleed With Bitcoin
September 07 2021 - 11:47AM
NEWSBTC
Litecoin awoke from a month-long slumber to follow the general
sentiment in the market. The price of LTC broke above the $200
resistance, only to drop with the crypto market flash crash. At the
time of writing, Litecoin trades at $181 with a 17.31% loss in the
daily chart. The market seems to be reacting to the events
triggered by El Salvador making Bitcoin legal tender. Whales could
have used the bullish sentiment to push down the prices, triggered
liquidations, and entered new positions. Despite the crash, Analyst
Ali Martinez believes Litecoin could reclaim its bullish momentum.
Since the beginning of August, the number of unique addresses that
joined the network reached a higher high, the analyst said. As seen
below, this metric stood at 220,000 new addresses created on
September 6th alone. The Number of New Addresses from Glassnode is
useful to measure the number of users with fresh capital coming
into LTC and “could be interpreted as a sign of optimism”, Martinez
said. In addition, large investors went on a “buying spree” with
the number of addresses holding 10,000 to 100,000 adding over
720,000 LTC in the past 30-months. This coincides with the increase
in the price of Litecoin, as seen below. Further data provided by
IntoTheBlock records around 170,000 addresses that bought 3 million
Litecoin when the price was at $222. Martinez believes this is the
next major resistance, LTC’s price must recover and rise above it
to push into previous highs. Support is bigger than resistance in
terms of volume. Still, prices must slice through $222 to advance
further. Litecoin, Solana, Polkadot, Follow The Bearish Trend
Almost no altcoin in the top 20 by market cap has been able to hold
its gains. Litecoin is one of the worst-performing in the past day,
followed by Internet Computer (ICP) with a 23% loss, Polkadot (DOT)
with a 17.3% loss, Cardano (ADA) with a 16.6% loss. Related Reading
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Course These altcoins have shown resilience to previous downside
trends. Only Solana (SOL) records a 10.7% profit in the daily chart
on the back of the growth of its ecosystem. In the short term,
Bitcoin could determine the fate of the entire market. Litecoin
displays solid fundamentals for a recovery, but BTC losing key
support at $43,000, could potentially trigger another leg down to
its previous range around the high levels of $30,000.
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