• Litecoin witnesses a 360% surge in holder inflow post third halving, signaling strong accumulation trends.
• Despite positive metrics, LTC’s market performance remains subdued, prompting questions about it potentially hitting a market bottom.

Litecoin’s Post-Halving Activity Surges

Litecoin’s (LTC) halving events often trigger shifts in the market. After the blockchain’s third halving, a noticeable accumulation of the coin was observed. This naturally spurs the expectation among investors of witnessing an uptick in LTC’s price, especially considering the increased buying sentiment reflected in recent data.

Crypto analyst VICKADO, referencing IntoTheBlock data, tweeted about the sharp rise in Litecoin’s total addresses with a balance. This spike, which has been to the tune of over 360% in the past month, signals a strong buying momentum in the market.

Further bolstering the bullish sentiment, the number of long-term Litecoin holders recently crossed the 5 million threshold. This, especially post the halving event, denotes a tangible confidence in the digital currency as investors are anticipating a surge in LTC‘s price in the imminent future.

Moreover, there’s been no dip in the activity from the big players, or “whales,” suggesting that they too are likely placing their bets on Litecoin.

Decoding the Market Bottom Indicators

Despite the optimism, LTC’s actual performance hasn’t quite met investor expectations. As per CoinMarketCap data, Litecoin experienced a dip of over 5% in the past week, trading at $59.68 and boasting a market cap surpassing $4.3 billion. However, a closer look at some metrics suggests we might be witnessing Litecoin nearing its market bottom.

LTC’s MVRV Z Score is one such metric. It’s a tool that gauges if Litecoin is overvalued or undervalued in relation to its “fair value”. Historically, when the market value is considerably lower than the realized value, it’s often indicative of a market bottom. Currently, the LTC’s MVRV Z Score resides beneath the green zone, hinting at a possible market bottom.

Another metric that stands out is LTC’s aSORP. A value less than 1 suggests that investors are trading at a loss, and during a bear market, this can signal a market bottom. Currently, Litecoin’s aSORP is recorded at 0.97.

Diverging Market Sentiments

Interestingly, despite these seemingly optimistic metrics, the broader market exhibits mixed feelings. LunarCrush’s data underscores a simultaneous surge in both bullish and bearish sentiments for LTC by nearly 100% over the previous week. Additionally, the rise in the coin’s Altrank could be interpreted as a bearish sign.

Given this scenario, while there are clear indications of potential growth and opportunities for Litecoin, investors must proceed with due diligence and caution.