Blockchain analytics firm Santiment says Litecoin (LTC) is experiencing a strong wave of accumulation from whales, or wallets with at least 1,000 to 100,000 LTC.
In a new report, Santiment says that Litecoin whales have increased their holdings by roughly 270,000 LTC, or about $30,000,000 since the beginning of July.
The crypto insights firm also observes that the activity on the Litecoin network is surging despite the grinding bearish price action.
“Despite a -13.8% drop in price, the amount of unique addresses interacting with LTC has grown by +47.5% over the last 10 days. Potential bullish divergence?”
Santiment points out that Litecoin’s MVRV (market value to realized value), which aims to pinpoint market bottoms and tops, is at the same level it was at when LTC bottomed out in 2019 and 2020.
“Historically speaking, there’s still more room to the downside, but it’ll be interesting to see if -40% gets confirmed as a de-facto ‘bounceback’ zone in days to come…
…Still early to tell, but I’d keep an eye on Litecoin’s daily addresses this week. If the growth proves sustainable, it would be a rare example of network strength among crypto’s top caps.”
As for Bitcoin, the firm notes that the world’s leading crypto by market cap is near an all-time low in terms of BTC on exchanges, indicating an increasingly limited supply.
“Bitcoin is inching close to the then 18-month low of its supply on exchange ratio, which was hit back on Jan 2, 2021. As BTC continues moving off exchanges during these suppressed prices, it’s a promising sign that markets have decreased selloff risk.”
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