Litecoin flashes signs of a rally as traders become greedy
Litecoin's market value rip caused frantic activity on the network, evidenced by the jump in whale transactions and liquid supply.
- The daily active addresses count lifted to its highest level in four months.
- LTC recorded weekly gains of 6.14% at press time.
Boosted by the overall upbeat sentiment in the market, Litecoin [LTC] was set to finish the work week with significant gains. As of this writing, the “Digital Silver” exchanged hands at $68.55, up 7.95% from what it was a week ago, according to CoinMarketCap.
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Litecoin network gets energized
The market value rip caused frantic activity on the network. As per a post by the on-chain analytics firm Santiment, the daily count of addresses involved in LTC transactions lifted to levels not seen in the past four months.
Whale investors appeared to be the main contributors to the increased network traffic. The weekly count of transactions involving the movement of more than $100k in LTC leaped to 7,418, the highest since June.
The jump in transactions was driven by aggressive buying. Since the beginning of the week, the user cohort holding between 10,000-100,000 coins added nearly 400,000 more LTCs to their bags.
Moreover, the market rally woke many dormant wallets from slumber. The Age Consumed metric blasted to a six-week high as of 26 October, implying a decisive shift in sentiment from HODLing to trading. It also reflected a significant increase in LTC’s liquid supply.
Signals from the futures market
LTC’s spot market rise led to intriguing developments in the futures market as well. As shown, the number of long positions increased vis à vis short positions while the price rallied, per Hyblock Capital.
However, the sentiment changed dramatically as the rally halted and prices fell. Consequently, traders looking to profit from price declines outnumbered those betting on price increases.
Having said that, interesting findings came to light through the examination of Whale vs Retail Delta indicator. The negative values suggested that more retail investors were taking long positions than whale investors.
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However, as the indicator trended towards 0 in the last few days, it could be said that whales started to increase their exposure to longs.
The bullish sentiment was further exemplified by the shift in market mood from neutral to greed. Generally, greed drives prices up.
