Blockchain analytics firm Santiment says Litecoin (LTC) is experiencing a strong surge of accumulation of whales or wallets with at least 1,000 to 100,000 LTC.
In a new report, Santiment says Litecoin whales have increased their stocks by about 270,000 LTC, or about $ 30,000,000, since early July.
The crypto Insights company is also observing that activity on the Litecoin network is increasing despite the bearish price movement.
“Despite a -13.8% price decrease, the number of unique addresses interacting with LTC has increased + 47.5% in the last 10 days. Potential bullish divergence? “
Santiment points out that Litecoin’s MVRV (Market Value to Realized Value), which aims to identify market lows and highs, is at the same level it hit in 2019 and 2020.
“Historically there is still more room to go down, but it will be interesting to see if -40% will be confirmed as a de facto bounceback zone in the coming days …
… Early to say but I’d keep an eye on Litecoin daily addresses this week. If the growth proves sustainable, it would be a rare example of the network strength among the top crypto caps. “
Regarding Bitcoin, the company notes that the world’s leading cryptocurrency by market capitalization in terms of BTC is near an all-time low on the exchanges, suggesting an increasingly limited supply.
“Bitcoin is approaching the then 18-month low of its exchange rate offerings, which was knocked back on January 2, 2021. With BTC continuing to deviate from the exchanges during these suppressed prices, this is a promising sign that the markets have reduced the risk of sell-offs. “
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