Connect with us
Active Currencies 14778
Market Cap $2,557,616,555,646.10
Bitcoin Share 51.24%
24h Market Cap Change $0.70

All you need to know about Litecoin’s latest moves

2min Read

LTC has begun showing similar signs of previous pre-halving cycles. However, traders differed in the short-term expectations.

Share this article

  • Litecoin’s large transactions increased while on-chain volume reached a two-year high.
  • The price action supported a bullish momentum.

Of recent, Litecoin [LTC] has attracted increased trading participation due to speculation that the coin’s upcoming halving would result in a positive outcome for the price. Ergo, its on-chain transaction volume reached a two-year high, according to data from Santiment.

Besides, the number of whale transactions in the $100,000 range moved up to 1307. This signifies an increase in participation by large holders. And sometimes, this propels a spike in the LTC value.

The “lighter coin” is now more liquid 

Based on the information from the analytic platform, Litecoin’s volume reached 18.66 billion on 2 June. As a key metric for traders, the on-chain transaction volume gives a perception of user activity and liquidity. 

At press time, LTC’s value increased by 9.14%. It is noteworthy to mention that rising prices on rising volume indicates increasing momentum and potential uptrend.  

Before now, there were talks about a repeat of the historical pre-halving rally. And in the last few days, it seemed that the projection was already in motion.

Furthermore, it does not look like the attention around Litecoin will dwindle anytime soon. According to LunarCrush’s tweet, there has been a tremendous surge in the project’s social engagements.

Social engagement measures the extent of community participation around a coin across multiple social platforms. When the metric increases, it means that interaction around the asset has improved, just like it was in LTC’s case.

LTC: Vigor behind the price

From the technical outlook, LTC’s buying momentum was at a high level, as indicated by the Relative Strength Index (RSI). At press time, the RSI placed LTC in a bullish state with its value at 60.71.

Moreso, if it were to be 30 or less, then LTC would be considered oversold. And if the RSI value was 70 or more, then LTC could have retraced due to its stance in the overbought region.

Litecoin (LTC) price action

Source: TradingView

Meanwhile, Coinglass showed that Litecoin’s Open Interest (OI) has been increasing. The OI measures the number of outstanding derivatives contracts on exchanges. 

If the OI increases over time, it means that liquidity was flowing into the market. But when the Open Interest decreases, it indicates that traders were closing their positions.

Therefore, LTC’s OI condition suggests that traders were increasingly opening positions.

 

Litecoin Open Interest

Source: Coinglass


Realistic or not, here’s LTC’s market cap in BTC terms


Also, increasing positions, either short or long, could serve as strength for the LTC price action. Hence, a continuous opening of new contracts could further improve the coin’s current trend. 

With respect to liquidation, the derivatives information portal showed that almost $500,000 has been wiped out. But both longs and shorts shared the spoils.

Litecoin (LTC) liquidations

Source: Coinglass

Share

Victor Olanrewaju is a full-time journalist at AMBCrypto. Settled in Lagos, his fascination with blockchain technology and the cryptocurrency market arose out of his love of freedom and everything free. As a Nigerian, Victor understands the impact unfounded financial restrictions have on a population. He sees Bitcoin and cryptos as a way to circumvent these obstacles, as a tool for value creation despite all the setbacks. A graduate in Physics, Victor previously worked as a Senior Marketer at Melange Technologies. Before that, he dealt with crypto-marketers on a regular basis in his capacity as Copywriter at Ventrix Media. At AMBCrypto, Victor’s focus is on assessing the real effectiveness of both on-chain and off-chain developments on a project and its community sentiment.
Read the best crypto stories of the day in less than 5 minutes
Subscribe to get it daily in your inbox.
Please check the format of your first name and/or email address.

Thank you for subscribing to Unhashed.