One way to increase investor interest in crypto is network improvements. Developers of cryptocurrencies usually make improvement proposals to make the network efficient, meet the needs of users and fix problems that hinder smooth transactions.
In a recent development, Litecoin released a network upgrade to improve network security and fix critical issues affecting nodes.
The Litecoin Foundation announced an update called Litecoin Core 0.21.2.2 on March 2 and shared information about it Twitter. But it seems that the update is not enough to keep the interest of miners in the network high, due to the drop in the price of LTC.
Litecoin Prices Spike And Miners Are Recommended To Upgrade
LTC ends in 2022 at $68. On the same day, it recorded an intraday high of $70 and an intraday low of $67.79. The next day, January 1, LTC started with positive price movements, pushing the price to $74 by the end of the day.
The coin continued to rise to $90 on January 14 and $101 on February 2. From February 3 to March 3, LTC traded between $80, $90, and $100 on several days.
At press time, LTC is trading at $89, showing a slight loss in 24 hours. But the trading volume decreased by 48.42%, indicating a slow activity with the coin.
In particular, the Litecoin Core 0.21.2.2 increases the growth of LTC mining. data from Coinwarz shows that the network’s hashrate recorded a slight uptick, indicating a rush of new miners.
Miners May Lose Interest After Price Drops
However, LTC recorded a 7% price drop in 24 hours, scaring investors. Also, the daily chart shows the presence of bears pushing the price. The Relative Strength Index (RSI) of LTC is below the neutral mark, and there is also a decline in the Chaikin money flow (CMF).
Another indicator is that the price of LTC is touching the lower part of the Bollinger Bands, indicating a move into the high volatility area. The MACD also shows a bearish move in the LTC market, indicating more bears in the coming days.
Currently, the LTC chart indicator suggests a near-term downtrend in price. Block performance is also not encouraging, as the metrics look bad. Another worrying issue is that the volume of daily on-chain transactions for LTC is declining. Coinmarketcap shows a 48.56% drop in LTC trading volume.
Moreover, the demand in the derivatives market also collapsed when LTC recorded a sharp drop in DyDx funding levels on March 3. With all these losses and indicators, the LTC market recorded negative sentiments that reduced investor confidence.
Analysts worry that miners will also lose interest in the network if prices fall. Additionally, LTC struggles to be attached to daily candles during momentum swings.
Image from Pixabay and chart from Tradingview.com