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Bearish sentiment continues to cloud the broader crypto market, and Litecoin appears to have taken a notable hit, forcing its price to retest key support levels. However, the waning price performance has failed to hinder Litecoin’s blockchain development, which is demonstrating a bullish trend.
A Shift In Litecoin’s Blockchain Maturity
Even though its price has fallen sharply in the past few days, the Litecoin blockchain is persistently proving its resilience. Joao Wedson, a verified author and Chief Executive Officer (CEO) of Alphractal, has shared a recent analysis that shows that the LTC market is gearing up for a major shift.
According to the on-chain expert, Litecoin is about to shine as on-chain data reveals a steady rise in blockchain maturity. This surge in maturity reflects LTC’s ability to maintain relevance in an increasingly competitive crypto landscape. It also points to its shifting role as a dependable medium of exchange.
Specifically, the network maturity metric is a composite index that monitors a blockchain network’s stage of development. The metric shows that its market age has increased by over 20%, and the address activity ratio by about 25%.
In addition, wealth distribution via inverse Gini has grown by 25%, long-term holder participation has risen by 20%, and hash rate stability has increased by 10%. The increase in these areas points to a more mature, stable, and fairly distributed network, with robust long-term stability.
Source: Chart from Joao Wedson on X
Wedson has also highlighted several other key metrics to watch as the market slowly recovers from the recent bearish trend. The first metric is the True Market Mean, which is situated at the $88 price mark. As seen in the chart, the $88 level is currently acting as strong support against price pullbacks.
In the meantime, the breakout zone is located above the $123 level. Following the breakout, the expert believes that Litecoin’s price will surge to $183 mark, which represents the Alpha Price. Historically, LTC has experienced a wild ride when it targets the Alpha Price.
Looking at the Cumulative Value Days Destroyed (CVDD), the metric is showing a bullish scenario for LTC, where the asset could rally to a $900 peak. However, if the on-chain momentum picks up speed, it might reach $1,000.
Offering his final take, Wedson noted that long accumulation periods are intended to deter even the most tenacious investors. Nonetheless, as history demonstrates, LTC eventually breaks out when least expected.
LTC Exchange Reserves Surging
While Litecoin’s upside momentum has slowed down, Wedson has highlighted a notable trend among investors. According to the expert, investors on crypto exchanges appear to be positioning for a bounce.
This trend often reflects investor readiness to trade or sell, as coins flow into centralized exchanges. These investors have acquired a substantial amount of LTC in anticipation of a future spike in public interest.
LTC trading at $114 on the 1D chart | Source: LTCUSDT on Tradingview.com
Featured image from Adobe Stock, chart from Tradingview.com
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