Litecoin (LTC) price has gained 25% since dropping to a three-month low of $72 on June 14. As LTC now approaches $90, several on-chain metrics are flashing red signals. Will the bears trigger another price correction?
Proof-of-Work networks like Litecoin have scored big wins in recent weeks after the SEC court filings called the legal status of several prominent Proof-of-Stake altcoins into question.
The underlying on-chain data reveals worrisome trends as LTC approaches the next major price milestone at $90. Here’s how the bears could trigger a potential price correction in the coming weeks.
Litecoin Transactional Activity is Down by 80%
On-chain data shows that the underlying transactional activity has not fully accounted for Litecoin’s recent price rally.
Firstly, a month ago, on May 25, LTC recorded 532,000 transactions. At the close of June 26, that figure is down to 106,000. This represents a whopping 80% decline in transactional activity on the Litecoin network.
More importantly, between June 20 and June 27, LTC price gained 14%. Meanwhile, the number of transactions has dropped by 46% during this period.
The number of Transactions, quite literally, measures underlying economic activity on a blockchain network by summing the daily number of confirmed transactions.
When it declines considerably while the price rises, it signals that the price rally is large
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Author: Ibrahim Ajibade
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