- Small traders are capitulating, potentially signaling a bullish reversal for Litecoin as impatience grows among minor investors.
- Litecoin’s on-chain activity surges, with 412 million LTC transferred in one week, indicating strong network engagement.
According to the latest Santiment data, Litecoin’s value has dropped by 36% since its peak on April 1st, indicating severe market volatility. The drop in market value has coincided with a significant shift in the conduct of small traders.
⚡️ Litecoin has not been lighting social forums on fire with its market value dropping -36% since its April 1st peak. A sudden liquidation of 45.2K net 0.1-1 LTC wallets indicate that small traders are finally capitulating out of the OG crypto asset. Small fish impatiently… pic.twitter.com/qiZ9B72eG6
— Santiment (@santimentfeed) August 27, 2024
Small Traders Jump Ship: A Signal for Litecoin’s Potential Bullish Reversal?
A quick liquidation of 45.2K net wallets holding 0.1 to 1 LTC indicates that these small traders have finally capitulated, potentially predicting a turnaround for the OG crypto. This pattern, in which smaller investors “jump ship” due to impatience, frequently precedes a positive turnaround to begin turning bullish once again.
Despite the apparent negative sentiment, Litecoin’s on-chain volume has increased, confounding the overall market trend. According to CNF’s report from last week, the on-chain volume of Litecoin has more than doubled, with 412 million LTC changing hands in a single week, amounting to more than $26.5 billion.
This growth in volume is noteworthy and demonstrates a high degree of activity and interest in the Litecoin network. Furthermore, Litecoin has processed 62 million transactions in the last seven months, putting it on track to surpass last year’s total transaction count.
On the other hand, Litecoin is exhibiting hints of resilience. According to our prior report, the V-shaped rebound in LTC’s price demonstrates its increasing utility in payments and possible growth into banking services.
Litecoin’s low transaction costs and increased network activity are contributing to its growing popularity for everyday payments, making it a top choice for many users.
As of this writing, LTC is trading at around $60.43, down 4.43% over the last 24 hours. However, daily trade volume has climbed by 21.88%, totaling $297.85 million.
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