Leading digital information firm Santiment has revealed an on-chain bullish metric being developed for Litecoin (LTC) behind the scenes.
At the time of writing, LTC is trading at $148, down 64% from a record high of $410. However, Santiment says crypto whales may have other plans for early Bitcoin (BTC) competitors.
According to the company, Litecoin whales with “smart money” have accumulated for 15 weeks and have not been seen since 2017.
“Litecoin is up around +5% against BTC in the past two days, showing signs of life. Whale addresses with 10,000-1,000,000 LTC are a 15-week accretion pattern, the longest since 2017, adding 5% of LTC supply in just 15 weeks.”
Santiment also states that the privacy-focused blockchain Monero (XMR) is showing under-the-radar signals that could be bullish. According to the company, Monero has the highest rate of discussion on the forums in 10 months.
“Monero was fired from the crypto package on Thursday down. The assets have been quiet since hitting $513 on May 7, 2021. However, XMR is currently one of the few coins pumping in and on the forums. The discussion rate is the highest in 10 months. “
Looking at BTC and the broader market, Santiment says traders could be too confident to expect further price cuts.
Historically, the company says, the current situation often leads to short squeezes. This happens when a large number of traders try to sell the market and experience unexpected price increases, which leads to a series of liquidations and price increases. ..
“Bitcoin and some other altcoins are showing a shorter versus longer ratio than usual, which indicates that traders are expecting lower prices. Traditionally, this funding rate is when the ratio becomes very negative, short positions are ready to liquidate and the price goes up.”
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