- Litecoin’s large transactions increased while on-chain volume hit a two-year high.
- The price action supported bullish momentum.
From recent, Litecoin [LTC] has attracted more trading participation due to speculation that the imminent halving of the coin would result in a positive result for the price. Ergo, on-chain transaction volume hit a two-year high, according to data from Santiment.
In addition, the number of whale transactions in the $100,000 range has increased to 1307. This represents an increase in large holder participation. And sometimes this causes a spike in the LTC value.
⚡ #Litecoin‘s market value is +6.5% in the last 24 hours as the halving is now just over 2 months away. This increase is made possible by a huge number of on-chain transactions in 2 years and the highest whale activity since January. https://t.co/AcOYEV18tP pic.twitter.com/5x3oHWrl2I
— Santiment (@santimentfeed) June 1, 2023
The “lighter coin” is now more liquid
Based on the information provided by the analytics platform, Litecoin’s volume reached 18.66 billion on June 2. As an important metric for traders, on-chain transaction volume provides a perception of user activity and liquidity.
At the time of going to press, the value of LTC was up 9.14%. It is noteworthy to mention that rising prices with increasing volume indicates increasing momentum and a potential uptrend.
Earlier there was talk of a repetition of the historical pre half rally. And in recent days, it seemed that the projection was already moving.
Other than that, it doesn’t look like the attention around Litecoin will decrease soon. According to LunarCrush’s tweet, there has been a huge increase in the project’s social engagement.
🔔 $LTC shows increasing social involvement
33.32 million 24-hour social contacts +212.4%
$94.66 price +5.71%https://t.co/KMYGjB9jYH #litecoin pic.twitter.com/QtG7aP8ABb
— LunarCrush (@LunarCrush) June 1, 2023
Social engagement measures the level of community participation around a coin across multiple social platforms. When the metric rises, it means that the interaction around the asset has improved, just like in the case of LTC.
LTC: Force behind the price
From the technical outlook, LTC buying momentum was at a high level, as indicated by the Relative Strength Index (RSI). At the time of writing, the RSI placed LTC in a bullish stands with its value at 60.71.
Additionally, if it were 30 or less, LTC would be considered oversold. And if the RSI reading was 70 or above, then LTC could have retreated due to its position in the overbought territory.
Source: TradingView
Coinglass has shown that in the meantime Litecoin Open Interest (OI) has increased. The OI measures the number of outstanding derivative contracts on exchanges.
If the OI increases over time, it means that liquidity has flowed into the market. But when the outstanding interest decreases, it indicates that traders were closing their positions.
Therefore, LTC’s OI condition suggests that traders opened more and more positions.
Source: Coinglass
Realistic or not, here is the market cap of LTC in BTC terms
Also, increasing positions, short or long, could serve as a force for the LTC price action. Therefore, a continuous opening of new contracts could further improve the currency’s current trend.
With regard to liquidation, the derivatives information portal showed that almost $500,000 has been wiped out. But both longs and shorts shared the spoils.
Source: Coinglass