Litecoin: Despite New Update, LTC Struggles to Hold Miner Interest

A new network update called Litecoin Core 0.21.2.2, which, according to the official statement, was a new minor version release, was made available on March 2, 2023 for Litecoin [LTC]. An significant security fix impacting earlier versions was included in the current release. The update also included changes that strengthened network and node security.

When the upgrade was being issued, LTC’s mining industry expanded. According to statistics from Coinwarz, LTC’s network hashrate saw a modest increase. Hashrate increases typically signal a surge in new miners joining the network. It was fascinating to observe that the mining sector for LTC has thrived since its price has increased significantly since the start of this year. Nevertheless, as LTC’s price fell and suggested lower earnings, miners’ excitement may soon wane.

Moreover, according to CoinMarketCap, LTC’s price dropped by almost 7% in only the past 24 hours, alarming the cryptocurrency community. It had a market value of more than $6.45 billion at the time of publication and was trading at $89.12. The daily chart for LTC indicated that the bears had taken control of the market and were bringing the price of the coin down.

For instance, the relative Strength Index (RSI) for LTC was moving farther away from the neutral level. In addition, the Chaikin Money Flow (CMF) showed a decline. The bottom edge of the Bollinger Bands was reached by LTC’s price, indicating that a high volatility area was about to be entered. Data from the MACD showed that the market had a negative edge, which raised the likelihood that the decline would continue in the days to come.

The blockchain’s performance on the metrics front seems troubling, similar to LTC’s daily chart. LTC’s price decrease coincided with a sharp increase in volume, which validates the slump. LTC’s daily on-chain transaction volume in profit decreased as a result of the price reduction.

Due to the steep reduction in LTC’s DyDx financing rate on March 3, demand from the derivatives market also plummeted. However, the measures recently increased, reflecting the waning investor confidence, which added to the unfavorable views surrounding LTC.