Over the course of the year, the crypto-verse has seen some major pump and dumps caused by FUD, which has had a significant impact on token prices. Even Bitcoin was not immune to FUD, let alone meme coins like Dogecoin and Shiba Inu. Litecoin, on the other hand, has shown some resistance to the same.
Litecoin’s price soared early on Monday before plummeting after a news release touting a partnership with retail behemoth Walmart Inc. was revealed to be a forgery. Nonetheless, despite the rest of the market being fairly lukewarm at the time of publication, LTC was holding up noticeably better than the rest.
What factors have contributed to the currency’s price stability?
The OG coin club status of LTC
Litecoin was valued at $240 at one point, up nearly 40%, following the release of a press release touting a Litecoin-Walmart partnership. The altcoin’s trade volumes also reached their highest level since May 19th. Unfortunately, these figures quickly dropped after Walmart clarified that the news release was a hoax.
While this was undoubtedly disappointing, it was worth noting that LTC’s price did not plummet as a result of the FUD.
However, Litecoin received some good news a few days later. AMC made headlines when it announced support for Bitcoin Cash, Ethereum, and Litecoin. While the prices of ETH and BCH did not change significantly, the price of LTC has firmly held on to the $170-support level.
It is possible that Litecoin has done so well because it is a member of the OG coins club, which has been around for a long time. Aside from that, the consistent support of institutions has allowed it to grow.
Nonetheless, LTC’s metrics appeared to paint a two-sided picture of the altcoin.
Here is the verdict of the metrics…
While LTC active addresses were at an all-time high on September 8, they quickly fell. The FUD’s aftereffects were less visible, as active addresses remained higher than the previous year. The drop in active addresses also showed signs of reversal following the FUD news, forming a V-shaped recovery curve.
Furthermore, aSOPR and dormancy revealed contrasting patterns. Dormancy revealed that older coins were still in circulation, which was a bad sign for the price. Furthermore, the aSOPR on various averages revealed that profits are being realized.
Despite the fact that the price of Litecoin was falling at the time of publication, its aSOPR was increasing. This implied that profits are being realized, with previously illiquid supply potentially being returned to liquid circulation.
As a result, while LTC’s mid-short-term trajectory appears to be hampered by the larger market’s decline, long-term prospects appear promising. Furthermore, LTC’s resistance to the FUD demonstrated Litecoin’s market strength.