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Litecoin (LTC) is gradually reversing some of its gains as subtle consolidation returns to the market. While Litecoin is trading at $68.65, down 1.35% in the last 24 hours, data from Santiment projects an optimistic outlook for the Layer-1 protocol due to increased on-chain transaction activity.
As Santiment noted, Litecoin aims to end this work week with a massive increase in transactions. The outlook for its trading volume is negative and is marked by a 3% drop that places the traded amount at $353,198,358. Data from Santiment revealed that the total number of daily active addresses is pegged at 319,000 on average over the week, while recorded whale transactions reached 7,418.
This transaction growth is not uncommon for Litecoin and most high liquidity L1 protocols out there. Litecoin was a big beneficiary of the latest market resurgence, with its price skyrocketing as much as 6.42% in the last seven days and with a similar jump during the month.
Although a bearish correction is currently underway, the sustained growth of on-chain transactions marked by Litecoin may turn this negative trend into a healthy one in the near future. To project what comes next, we can expect a rebound to $66 if the current decline reaches that support zone.
Lagging behind Bitcoin as a market driver
It is not a myth that Litecoin maintains a close correlation with Bitcoin, and observable movements in the latter can have a profound impact on the former.
In the current market, Bitcoin has many positive fundamentals that can significantly boost its price in the coming weeks and months. The growing clamor for the approval of the Bitcoin spot ETF product by the United States Securities and Exchange Commission (SEC) is also reinforcing optimism about growth.
This event will undoubtedly impact Litecoin and as such will build on the records it has achieved since its inception 12 years ago.
