While many alternative coins (altcoins) have experienced significant price increases and reached new highs in December, Litecoin (LTC) has yet to show a similar upward trend. Instead, the price of LTC has remained relatively stable at the lows of 2023. Some investors believe that in a bull market for cryptocurrencies, coins that have not experienced price increases may have the potential to do so, and LTC could be one of those coins.
Over the past two months, price volatility for Litecoin seems to have been overlooked by investors. The price range during this two-month uptrend has been relatively narrow, fluctuating between $65 and $80. Furthermore, LTC’s trading volume has not seen significant fluctuations, with the Vol/Cap ratio remaining around 5%.
Litecoin has remained somewhat distant from recent trends that have garnered attention, such as meme coins and NFTs. Newcomers to the cryptocurrency space may be less familiar with LTC and have been drawn to the dominance of other utility coins like Solana (SOL), Injective (INJ), Chainlink (LINK), and many others.
From a technical perspective, the $60 price level is a significant and strong support for LTC for several reasons:
1. The $60 price level aligns with the support indicated by the weekly Super Trend indicator.
2. It represents the Point of Control (POC), the area with the highest liquidity for LTC in the past four years.
3. $60 also corresponds to the support level provided by LTC’s long-term trendline from 2020 to the present.
The current price is not far from this support level. Therefore, the price range from $70 down to $60 could be considered a strong buying zone for LTC.
Notable Increase in New Wallet Addresses
Although Litecoin’s price performance in December has not received much attention, on-chain data has generated some compelling signals. Since the Litecoin Halving event, the number of new wallet addresses created daily has been relatively stable. However, something changed in December.
Data from Ali_charts shows that in December, the number of new wallet addresses on the Litecoin network reached its highest level since the beginning of 2022. Not only did it reach a high, but it also demonstrated a sharp increase. For example, on December 20th, over 1.27 million new wallet addresses were created in a single day. Despite the significant increase in the number of new addresses, the LTC price has not experienced a similar price increase as many other alternative coins.
This could be a sign of Litecoin’s potential for price appreciation. It indicates that many investors continue to maintain confidence and accumulate LTC in anticipation of a significant price increase.