- 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.
⚡ #Litecoin‘s market value is +6.5% in the past 24 hours as its halving is now just over 2 months away. This surge has been powered by a massive 2-year high in on-chain transaction volume, and the highest whale activity since January. https://t.co/AcOYEV18tP pic.twitter.com/5x3oHWrl2I
— Santiment (@santimentfeed) June 1, 2023
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.
🔔 $LTC is showing accelerating social engagement
33.32M 24H social engagements +212.4%
$94.66 price +5.71%https://t.co/KMYGjB9jYH #litecoin pic.twitter.com/QtG7aP8ABb
— LunarCrush (@LunarCrush) June 1, 2023
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.
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.
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.
Source: Coinglass