Altcoins in the top 25 on CoinMarketCap are rallying as the alt season starts. At the time of publishing, 23 of the top 25 altcoins are delivering positive weekly returns. Among these, Litecoin, which ranks ninth in terms of market capitalisation, has reported a daily increase of more than 4%, and the price is still 42 percent below its all-time high.
According to IntoTheBlock’s on-chain study, there is a clear bullish sentiment among traders for Litecoin, and as the price increases, it is predicted to touch a local peak. The concentration of big HODLers is currently about 50%, and there is evidence that there is potential for more rallying and price exploration. While getting closer to the ATH would necessitate greater liquidity and volatility, trading activity on top exchanges is currently strong enough to raise the price.
There is an uptick in demand based on trading volume on spot markets, which may bring the price closer to $240. Following Ethereum’s daily gains of 5.11 percent, the alt boom has accelerated, boosting trading inflows to Litecoin. The steady rise in price on top spot markets reflects this improved inflow and overall bullish sentiment.
Other metrics, such as mean transaction volume data from Glassnode, indicate Litecoin’s bullish sentiment and its effect on the market. The average transaction volume of Litecoin has just hit a one-month peak of 172.6 LTC, which is a bullish indicator since the number of significant or above-average transaction values is growing. The realised capitalisation of Litecoin is another statistic encouraging its bullish rally.
The same conclusion can be drawn from this statistic as from the improved mean transaction rate. Portfolios of retail traders are expected to profit from double-digit or higher returns if Litecoin hits the local top in the coming week.
Since the beginning of the year, the price has risen by 61.45 percent. Throughout the year 2020, uncertainty declined steadily. However, from March 21, 2021 to the end of March 2021, Litecoin traded below $200. When the market activity of Litecoin is paired with its HODLing pattern, with over 50% of Litecoin HODLers owning the token for more than a year, the new trend is bullish in the short term. As a result, retail traders who purchased the commodity for less than $195 profited. While some may argue that now is the right time to short Litecoin, there is a stronger risk that the price will grow to a local peak.
208 Interactions, 2 today