- Litecoin whales with 1,000 to 100,000 LTC increased their stocks by 270,000 in July
- Unique addresses on the Litecoin network have also grown 47.5% in the past 10 days
- Litecoin’s on-chain metrics are bullish. However, LTC’s fate is tied to that of Bitcoin
- Litecoin has overcome a descending triangle that had formed since mid-May
- The 50-day moving average is Litecoin’s next target if current bullish momentum is maintained
Litecoin whales with 1,000 to 100,000 coins added 270,000 to their stocks in July. This emerges from an analysis by the Santiment team, who shared their observation in the table below.
Litecoin’s active addresses have grown 47.5% in 10 days
In addition, the Santiment team pointed out that the number of unique addresses interacting with the Litecoin network has increased by 47.5% in the last 10 days. This is despite the fact that Litecoin has been trading in the bearish zone for most of the month.
Litecoin’s on-chain metrics are bullish
Consequently, Litecoin’s on-chain metrics are optimistic given the accumulation of LTC whales and the high level of address activity on the network.
Litecoin is breaking out of a descending triangle targeting the 50-day MA
In terms of price action, Litecoin is currently trading at $ 125 after bouncing off the $ 100 support earlier this week. With this move, Litecoin has broken out of the grip of a descending triangle that could have resulted in a trip under $ 100.
This descending triangle and the 50-day MA have been highlighted on the daily LTC / USDT chart below.
The following can also be observed from the diagram.
- Litecoin is attempting a bullish reversal
- However, trading volume is decreasing, indicating weakness in the LTC bulls
- The daily MACD also suggests a slight resurgence in buying activity
- The daily MFI and RSI are in the neutral territory, which suggests that tomorrow’s close of the week could go either way
As with all analysis of altcoins like Litecoin, traders and investors are reminded that the fate of LTC rests in the hands of Bitcoin. Hence, Litecoin is likely to mimic any Bitcoin market volatility. If Bitcoin reclaims the 50-day moving average, Litcoin will most likely do the same. If Bitcoin drops back to $ 33,000 or even $ 32,000, Litecoin will most likely re-enter the descending triangle.