Journalist
Posted:
- Whale activity around the coin remained high last week.
- Indicators pointed to LTC reaching its market bottom.
Litecoin [LTC] Halvings are major events followed by changes in market trends. This time, an increase in accumulation was noticed shortly after the third blockchain halving. Now that a month has passed since the event occurred, investors should expect LTC to register gains on the price chart as they stockpile the coin.
Read Litecoins [LTC] Price prediction 2023-24
Litecoin investors are piling in
VICKADO, a crypto analyst, pointed out in a recent tweet that, according to IntoTheBlock, the total number of Litecoin addresses with balances has increased sharply in recent days. This clearly indicated that buying sentiment was dominant in the market.
$LTC The inflow increases drastically, which means more accumulation takes place.
I hope this prevents me from missing something.
Thank you very much for the great analytical tool, @intotheblock. pic.twitter.com/e46RpWJYdt
– VICKADO | Crypto & Design👨💻 (@VictorIwuegbu) September 10, 2023
Moreover, the blockchain also witnessed a huge influx of holders. In fact, the figure has grown over 360% in the last 30 days, which looked encouraging.
If reported previously, the total number of long-term owners of Litecoin has also reached the 5 million mark, indicating their confidence in the crypto. Accumulation increased after the halving as investors expected a rise in the price of LTC in the coming months.
Whale activity nearby LTC has also remained high, indicating that the major players may also be active in the banking sector.
Source: Santiment
Is Litecoin at the Bottom of the Market?
Although investor expectations were high, LTC’s performance did not match them. According to CoinMarketCapthe LTC has fallen by more than 5% in the past seven days. At the time of writing, it was trading at $59.68 with a market cap of over $4.3 billion. However, there was a possibility that LTC would hit the bottom of the market.
This seemed likely when you looked at it LTC‘s MVRV Z-score. The metric evaluates whether Litecoin is overvalued or undervalued relative to its ‘fair value’. A significantly lower market value than the realized value often indicates a market bottom. As shown in the chart, LTC’s MVRV Z-score was below the green zone, which could indicate a market bottom.
Source: Glassnode
Another metric that attracted attention was LTC‘s aSORP. When the value of the measure is less than 1, it means that investors are selling their investments at a loss. In the middle of a bear market, this could indicate a market bottom. At the time of writing, Litecoin’s aSORP had a value of 0.97.
Source: Glassnode
Realistic or not, here it is The market cap of LTC in BTC conditions
While the above figures looked positive for LTC, the market as a whole was surprisingly not completely confident. LunarCrush’s facts revealed that both LTC’s bullish and bearish sentiments have increased nearly 100% over the past seven days.
The coin’s Altrank has also risen lately, which is a bearish signal.
Source: LunarCrush