• Percentage of Litecoin wallets in profit has risen to its highest level since 2021 after recent gains 
• A bearish reversal is likely after an inverse cup and handle pattern on the lower timeframe 

Litecoin (LTC) has gained by more than 50% over the past month, mirroring the widespread gains across the altcoin market. However, despite this rally, some analysts actually believe that Litecoin may be dead. 

In an X post, popular analyst Ali Martinez noted that LTC is now trading at the same price as back in 2017. Moreover, he argued that it now lacks strong fundamentals to drive any long-term growth.

According to him, while LTC might continue to register some short-term gains, it will still be stuck within a consolidation range. 

Litecoin wallet profitability hits 2021 highs

Despite this bearish outlook, however, Litecoin’s recent gains led to a surge in the number of wallets that are in profit to its highest levels since 2021. In fact, data from IntoTheBlock revealed that 78% of LTC holders, equivalent to 6.33 million addresses, are now profitable.

Conversely, the wallets that are in losses have dropped from 46% to 16% in just one month. 

A spike in wallet profitability could increase market confidence and lead to a bullish outlook for Litecoin. 

However, some traders who bought early and those who bought during the rally might start to take profits, causing the trend to weaken. 

Is a high address count a positive indicator?

The number of active addresses on Litecoin stood at 364,000 at press time – A higher count than for most altcoins. For instance, Cardano (ADA), an altcoin with a market capitalization that is four t

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Author: Muthoni Mary