LTC Shows Bullish Signal as Whales and Sharks Amass Litecoin, Reveals Santiment – Yet, There's a Twist
Crypto Analytics Platform Santiment Indicates Bullish Signs for Litecoin (LTC) Post August 2nd Halving
In a recent video strategy session, Brian Quinlivan, the Director of Marketing at Santiment, discusses Litecoin's potential bullish outlook following its August 2nd halving event.
Quinlivan emphasizes that the peer-to-peer payments network seems to be forming a bullish divergence, with whales and sharks accumulating LTC during price declines.
He notes, "I find it valuable to observe holders with Litecoin quantities ranging from 100 to 100,000. It appears that accumulation is ongoing. Approximately 10 days before the halving, these holders constituted about 42.4% of the supply. They've since added roughly half a percentage point to their collective holdings, equating to a significant increase in absolute coin amounts - 31.5 million, the highest this year. This trend is favorable for Litecoin."
He points out the contrasting movements between price and shark/whale holdings, describing it as a bullish divergence. Quinlivan sees this as an indication that Litecoin has long-term potential for a positive trajectory, possibly by the end of the year or even in 2024.
Regarding Litecoin's 30-day Market Value to Realized Value (MVRV), a measure used by traders to identify oversold or overbought conditions, Quinlivan suggests that Litecoin may need a near-term dip to establish a market bottom before an upward move.
"Despite a 26% drop since the peak on July 2nd, 30-day traders are still up around 11%, while 365-day traders are up around 0.6%. Typically, both long-term and short-term traders need to be underwater for market bottoms to form, indicating an opportune time to invest. Thus, some further cooling off might be necessary. Once the 30-day average trading returns go into negatives, it could provide a favorable setup for buying at a premium or a low-risk timeframe."
At the time of writing, Litecoin is trading at $82.98, experiencing a 1.3% decrease over the last 24 hours.
Aug 11, 2023