- Litecoin’s bounce back is strongly supported by strong address growth.
- Whales offer support to LTC as sell pressure attempts to erase recent gains.
Litecoin [LTC] was one of the top trending coins between 17 – 24 January, and for good reason. It has outperformed many top coins in the last few months, including Bitcoin [BTC] on key metrics, but what does this mean for its future?
Well, LTC’s upside might result from higher demand from whales. Investors are more likely to flock towards a coin perceived as undervalued and one that has more potential gains ahead.
Litecoin’s undervalued perspective
LTC is still trading under $100 despite the recovery. Thus, a 10X gain could be more probable or easier than a 10X BTC rally. This might be the reason for increased interest in Litecoin, especially from whales.
Speaking of whales, LTC experienced a large surge in whale transaction count above $1 million between 23 – 24 January.
The recent surge was accompanied by a surge in social dominance. Such a major surge in whale transaction count should trigger a massive selloff under normal circumstances.
Until press time, LTC’s price action put up a defensive wall, preventing more price slippage. In other words, whales might be accumulating, hence warding off the bears. Litecoin’s MVRV ratio registered a powerful surge in the last 24 hours.
Realistic or not, here’s LTC’s market cap in BTC’s terms
The MVRV ratio suggested a surge in profitability for traders, especially those that purchased recently before the price started rallying in the last 24 hours. This is despite a slight drop in daily active addresses.
Perhaps this is a sign that whales remained optimistic about LTC’s prospects this year at press time. If this trend continues, then Litcoin might be due for a solid performance this year.