While not a frontrunner in the market, Litecoin is known for being always present. Its importance comes from the minimal yet extensive use cases that keep it relevant. To date, investors continue to rely on those use cases to recoup their losses.
Litecoin finds a new audience
Yesterday Litecoin became the means of payment for another large company in Canada. Popular internet provider Oxio has added Litecoin to the list of payment methods for their services.
According to the CEO, because Litecoin is quite popular with its new customers, the company decided to bring it on board.
This allows Litecoin to tap into a wider audience than those who were before the addition anyway. This is a huge deal for Litecoin as adoption has been a bit of a saving grace for the altcoin for many.
Litecoin was trading at $68.31 at the time of writing, up 7% in the past 48 hours. However, this increase is not enough to offset last week’s drop of 31.66%.
The lack of a quick recovery also keeps the altcoin stuck in the oversold zone, where the Relative Strength Index (RSI) fell just after the crash on May 9.
This did not help Litecoin’s already low market value and instead escalated the decline. Currently, the market value of LTC is as low as it was in July 2020.
Most of this is fueled by the fact that investors haven’t been particularly active in joining the chain since January. Transactions on Litecoin have only increased by 19k on a daily basis over the past five months.
On the other hand, investor presence has remained virtually unchanged over the past three months as only 300,000 holders were active at the time. On the contrary, there are now only 295,000 active holders.
And their inactivity and lack of new investors are justified by Litecoin’s returns. The annual ROI looks pretty unappealing if you’re below neutral, and it will take more than a 7% spike to recover from that.
This post Litecoin’s New Low and Up 7% – A Classic Case of…?
was published first on https://ambcrypto.com/litecoins-new-low-and-a-7-hike-a-classic-case-of/