Journalist
Posted:
- Whale activity around the coin remained high last week.
- Indicators suggested that LTC has reached its market bottom.
Litecoin [LTC] halvings are major events that are followed by changes in market trends. This time, an increase in accumulation was noted soon after the blockchain’s third halving. Now that a month has passed since the event took place, investors might be expecting to see LTC register gains on its price chart as they have been stockpiling the coin.
Read Litecoin’s [LTC] Price Prediction 2023-24
Litecoin investors are accumulating
VICKADO, a crypto analyst, pointed out in a recent tweet that, as per IntoTheBlock, Litecoin’s total addresses with balance increased sharply over the last few days. This clearly indicated that buying sentiment was dominant in the market.
$LTC inflow is drastically increasing, that means more accumulation is ongoing.
I’m hoping on this one to avoid missing out.
Thank you so much for the great analytical tool, @intotheblock. pic.twitter.com/e46RpWJYdt
— VICKADO | Crypto & Designs👨💻 (@VictorIwuegbu) September 10, 2023
On top of that, the blockchain also witnessed a massive inflow of holders. In fact, the figure grew by more than 360% in the last 30 days, which looked encouraging.
As reported earlier, Litecoin’s total number of long-term holders has also reached the 5 million mark, signaling their confidence in the crypto. The accumulation increased after the halving event as investors were expecting a jump in LTC’s price over the coming months.
Whale activity around LTC has also remained high, suggesting that the big shots might also be banking.
Source: Santiment
Is Litecoin at its market bottom?
Though investors’ expectations were high, LTC’s performance did not align with that. According to CoinMarketCap, LTC was down by more than 5% in the last seven days. At press time, it was trading at $59.68 with a market capitalization of over $4.3 billion. However, there was a possibility of LTC hitting market bottom.
This seemed likely from a look at 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 has often indicated market bottoms. As evident from the chart, LTC’s MVRV Z Score was resting below the green zone, which might be indicating a market bottom.
Source: Glassnode
Another metric that grabbed attention was LTC’s aSORP. When the metric’s value is less than 1, it means that investors are selling their holdings at a loss. In the middle of a bear market, it can indicate a market bottom. At press time, Litecoin’s aSORP had a value of 0.97.
Source: Glassnode
Realistic or not, here’s LTC’s market cap in BTC terms
Surprisingly, though the aforementioned metrics looked positive for LTC, the overall market was not fully confident. LunarCrush’s data revealed that both LTC’s bullish and bearish sentiment surged by nearly 100% in the last seven days.
The coin’s Altrank also increased lately, which is a bearish signal.
Source: LunarCrush