Litecoin Price Rebounds As Hash Rate Hits Peak: What’s Next?

• With the record network growth, the hash rate has reached 1.64k TH/s.
• Litecoin price recovered 4% intraday and reclaimed the $100 mark.

Litecoin (LTC) had a turbulent week, losing over 14% of its value amidst a broader market. However, market sentiment suggests a potential rebound. Furthermore, the Litecoin price reclaimed the $100 round mark.

However, large investors have continued offloading their holdings, driving the recent decline. Despite this, the LTC price upholds the critical support level, potentially paving the way for further upside.

Per IntoTheBlock, On December 18, 2024, the hash rate of the Litecoin network hit a record 1.64k TH/s. In the meantime, the hash rate has averaged 1.54k TH/s over the past 30 days. It peaked at 1.77k TH/s on December 14 and went as low as 1.35k TH/s on November 21.

The hash rate is a critical metric examining a crypto network’s total computational power to process transactions. A higher hash rate is a sign of growing miner participation and the use of more efficient mining gear.

On-chain volume has been building up since the start of December. Data from DeFiLlama revealed that Litecoin’s volume has experienced significant improvements in the past seven days. The volume was noted at $1.37 Billion at the time of writing.

At press time, Litecoin price traded at $104.75, noting a rise of over 4.30% in the past 24 hours. With a market cap of $7.89 Billion, it ranked 24th among the top crypto coins.

Optimism Among Long-Term Holders Fuels Market Stability

IntoTheBlock data showed that 78% of Litecoin’s addresses had held it for over a year. Historically, the holders of these coins piled up their amount in a low bullish environment and then dumped it in a high bearish situation.

There has not been a significant change in the long-term holdings in this cycle compared to other cycles. However, this trend also indicated that many investors have held their Litecoin for the present bear market. They are hoping for the LTC price to bounce back well.

Grayscale Continues to Increase Litecoin Exposure

Grayscale Investments continues to be a significant Litecoin investor. They kept purchasing even as the altcoin’s price dropped.

Data from Coinglass shows that the firm purchased 2230 LTC on Thursday. That pushed its 30-day accumulation over 41,100 LTC, with total Litecoin holdings. It now represents a value of $220 million overall.

Litecoin Price Prediction: Is a Reversal on the Horizon?

On the daily timeframe, the market structure was slightly bearish. Furthermore, the Litecoin price has rebounded from the 100-day EMA mark.

The buyers were able to carry on this, believing it could drive the LTC price higher. The daily RSI had noted a bearish divergence. However, the altcoin has regained momentum and replicates signs of reversal.

The Chaikin Money Flow (CMF) was at 0.12. This means that significant capital inflows were occurring, conveying interest from market participants.

Data from Coinglass showed that the Open Interest (OI) has risen over 1.43% to $411.72 Million. That conveyed a long buildup in the past 24 hours. The immediate support zones for the Litecoin price were $95 and $90. At the same time, the resistance levels were $110 and $120.

Disclaimer

This article is for informational purposes only and provides no financial, investment, or other advice. The author or any people mentioned in this article are not responsible for any financial loss that may occur from investing in or trading. Please do your research before making any financial decisions.