Litecoin [LTC]’s MimbleWimble Extension Blocks (MWEB) upgrade has been trailed by a series of unfortunate events over the last few weeks. As a result of the facilitation of anonymous transactions on cryptocurrency exchanges, the MWEB upgrade led several exchanges to delist LTC.
For example, three weeks ago, five cryptocurrency exchanges in South Korea, namely, Upbit, Bithumb, Coinone, Korbit, and Gopax, delisted LTC. They all claimed that anonymous transactions implemented via the MWEB upgrade were against the country’s laws. In addition, Binance also withdrew its support for deposits and withdrawals of LTC coins that utilized the MWEB function. All of these contributed to the price of the crypto falling.
Curiously, over the last seven days, LTC has risen on the charts. The coin surged above its $58-resistance level during intraday trading on 26 June and went as high as $60. In fact, it has seen a 15% uptick in price in one week.
Onwards and upwards
After several weeks of price decline, LTC is finally poised for the much-awaited bull cycle. Seven days ago, Litecoin was worth $52.5. After that, the price rallied steadily and parked at an index of $57.88 at the time of writing.
Currently ranked 20th on CoinMarketCap’s list of cryptocurrencies, LTC’s market cap saw some growth over the past week. It was $4.086 billion at press time, after having hiked by 9% from $3.7 billion seven days ago.
Source: Santiment
Since 20 June, a steady accumulation of LTC has been underway. As a result, the Relative Strength Index (RSI) has taken on an upward curve over the last week.
At press time, it stood at 51.45. With the MACD green since 18 June and following an upward intersection of the MACD line with the trendline, LTC commenced a rally of sorts on the charts.
Source: TradingView
On-chain analysis
Interestingly, data from Santiment revealed that despite an uptick in price, LTC has been seeing some declines. For example, after marking a count of 1,237 whale transactions for transactions above $100,000 on 23 June, this fell by 75% in the four days that followed.
Similarly, the count for transactions above $1 million has been irregular over the last seven days. A high of 76 was ticked on 25 June, after which this declined. At press time, this was pegged at 19.
Source: Santiment
In addition to this, the number of unique addresses transacting LTC daily has declined steadily since 22 June. With a figure of 85.1k at press time, a 236% decline was seen in just five days.
Source: Santiment
Furthermore, from 20 June to 24 June, transaction volume on the network grew steadily. However, after the coin recorded a high of 47.66 million in transaction volume on 24 June, it dropped by 66%.
Source: Santiment