Litecoin’s value has plummeted by 36% since peaking on April 1st. The crypto asset hasn’t been generating much buzz on social forums either, as per latest data.
Meanwhile, a certain cohort of small LTC holders have been quietly exiting the market. However, this has ignited interest in a potential bullish reversal shortly.
According to Santiment’s findings, there has been a sudden liquidation of 45.2k net wallets holding between 0.1-1 LTC which suggests that small traders are losing confidence and capitulating on Litecoin.
This exodus of small-scale holders, often dubbed “small fish,” could be a significant indicator of a potential bullish turnaround, as such behavior historically precedes price rebounds in established assets like Litecoin.
The crypto analytic platform tweeted,
“Small fish impatiently ‘jumping ship’ is often a turnaround sign for an asset to begin turning bullish once again.”
Jay Milla, the director at Litecoin Foundation, recently shared data compiled by IntoTheBlock, which revealed significant growth in Litecoin’s on-chain activity.
He noted that the on-chain volume has more than doubled over the past year, demonstrating the network’s increasing usage and robustness.
Specifically, the volume surged from 196 million LTC moved on-chain during the week of August 14, 2023, to over 412 million LTC in the last week. This steady rise in on-chain transactions could potentially evidence growing adoption, even amidst market fluctuations.
Litecoin is currently trading at $63 after a modest decline of nearly 2% over the past day.