Litecoin sharks may have the final say on LTC’s direction- Here’s why
- Litecoin’s $1 million transactions reached a January high.
- The LTC’s possible direction could be dependent on continual whale action.
After hitting highs earlier in January, Litecoin [LTC] whales have stamped their authority in the market again as large transactions hit peak levels.
According to Santiment, whale transactions around the $1 million region hit 2023 highest on 25 January. Details from the on-chain platform showed that there were over 100 transactions within the range on the said date.
⚡️🐳 #Litecoin's large whale transactions have exploded with activity, indicating a resurgence of transactions that are valued at $1 million or more. On the tail end of the last two similarly sized whale spikes, prices jumped +37% and +33% at their peaks. https://t.co/WD3Mc5QWKg pic.twitter.com/ruuIGXHEBQ
— Santiment (@santimentfeed) January 26, 2023
Read Litecoin’s [LTC] Price Prediction 2023-2024
“In Litecoin we trust”
However, the circumstances of this spike have been different from the last two occurrences. The previous two times Litecoin hit such a pinnacle, there were notable increases in the LTC price. Meanwhile, the coin has only gained 1.07% in the last 24 hours.
Nevertheless, this has not deterred the confidence of its long-term holders. According to Glassnode, the Litecoin reserve risk was 0.00069— a considerably low value. The reserves risk measures the belief that holders of an asset have in it.
Since the reserve risk was low, it depicted that confidence was high. With the LTC price incredibly down from its all-time high (ATH), it matches the viewpoint of unwavering trust in holding the cryptocurrency.
The whales’ actions were in contrast to what they were involved in a few days back as most sold off part of their holdings. However, the resurgence in large transactions might also not be bewildering.
This was due to the approaching Litecoin halving. In past halvings, Litecoin whales had an attitude of accumulating days before the event. So, there is a chance the recent steps link to it.
Interestingly the activity seemed to have affected the value of LTC held by investors. At the time of writing, the Market Value to Realized Value (MVRV) ratio had revived to 9.461%. The ratio acts as a measure of a cryptocurrency’s value in the market with respect to traders’ buying and selling behavior.
The current stance implied that LTC holders edged further toward profits rather than losses. On the other hand, the MVRV z-score trended considerably higher than it has been. Still, it was negative meaning that Litecoin was likely undervalued heedless of its 26.97% 30-day gain.
Realistic or not, here’s LTC’s market cap in BTC’s terms
No show for LTC?
Indications from the daily chart displayed inconsistency with the Litecoin momentum. Based on the Awesome Oscillator (AO) trend, the coin did not side with a bullish or bearish edge as the green and red bar interchanged turns.
The Directional Movement Index (DMI) obeyed the reading of AO. While the Average Directional Index (ADX) showed significant strength at 40.72, the support was neither for the positive DMI (green) nor the negative DMI (yellow).