Litecoin's Network Activity Soars, but LTC Price Continues to Decline

The Litecoin network has been experiencing a significant increase in user activity and the establishment of new addresses. However, in contrast to this heightened network activity, the price of the cryptocurrency LTC has been steadily declining.

On December 20th, the Litecoin network witnessed a remarkable milestone as 1.27 million new addresses were created in a single day, marking the highest number in two years. Additionally, daily active addresses within the Litecoin network reached a one-week high, indicating an increased use of LTC for transactions. Despite these positive developments, they have not translated into a positive impact on LTC's price.

While LTC managed to briefly surpass the $72 mark, traders quickly sold off the coin at this level. At the time of writing, the price of 1 LTC stood at $71.6, reflecting a 1% loss over the past day, according to CoinMarketCap. Interestingly, futures traders have been accumulating Litecoin, suggesting a sideways trend in trading.

Several technical indicators are pointing towards bearish sentiment. The MVRV indicator is decreasing, along with the MACD, signaling bearish pressure. The decreasing CMF (Chaikin Money Flow) also indicates a high likelihood of a continued downtrend. However, the MFI (Money Flow Index) for LTC has transitioned from a neutral position to a bullish one.

While Litecoin struggles, other cryptocurrencies are experiencing growth. Solana (SOL) recently surpassed $117, driven by excitement around meme tokens, the launch of the USDP stablecoin by Paxos, and airdrops among Solana Saga Phone owners. Additionally, the Optimism (OP) token saw a 34% increase in value over the course of a day, accompanied by a rise in the number of addresses.