- Right in the middle of the recent bear market, Litecoin appeared to be one of the star players.
- Litecoin has surged by over 50% this month from $55 to $92 where it now sits.
- Over the last two weeks, litecoin has outperformed two of the top cryptos, Bitcoin and Ethereum, which have lost double-digit percentages since then.
In early July, the bullish performance of the cryptocurrency, as per analysts was partly influenced by changes in its supply dynamics, or to something else entirely.
In contrast to some of the bigger players in the crypto market like Bitcoin and Ether, which have fallen 19% and 26% this month, LTC has surged by over 50% this month from $55 to $92 where it now sits.
So far, LTC prices have soared to $92.63, at press time, charting around 48.90% yearly gains.
It might be interesting to note that these changes in“supply dynamics” being spoken of by analysts in the crypto community could be due to third LTC halving scheduled in two days.
For those wouldn’t know, halving in blockchain terms means when the mining reward on the blockchain is cut in half. Halvings slow down the rate at which new coins are produced and released to miners.
In essence, this epoch in the history of LTC is expected to cut the LTC paid to miners for their services in half.
The LTC mining rewards are expected to be cut down from 12.5 $LTC per block to 6.25 $LTC per block and will some months after the time of publication.
The previous Litecoin halving happened in August 2019 and saw the price of Litecoin jump almost ten times from a low of $41 to over $400 per token.
The question remains: “Could Litecoin rally before the halving again?”
Sharks Have Begun a Buy-Frenzy, Says Santiment
According to Santiment, while the cryptocurrency ecosystem seems to be abuzz with the recent price explosion of LTC, nobody is talking about the large address (shark) accumulation that has been one of the biggest highlights of the whole FTX saga.
The blockchain monitoring and data aggregation platform notes that on the cryptocurrency’s way to the first price increase above $80 since May, addresses holding 1k to 100k $LTC have gathered $43.4M $LTC over the last two weeks.
Santiment also notes that the accumulation of shark addresses holding 1000 – 100,000 Litecoin has hit a 7-month high.
Santiment also notes on an appended insights page, that November 2022 might as well be dubbed the “Let There Be Litecoin.” month.
Price Action: Litecoin
Over the last two weeks, litecoin has outperformed two of its biggest competitors, Bitcoin and Ethereum, which have lost double-digit percentages since then. $LTC has moved up by as much as 50% against Bitcoin in November and now sits at a yearly high of 0.0047 BTC on the charts.
Santiment notes that the altcoin merits a closer look, following the 29% price surge in early July. Litecoin has charted higher gains than most of its counterparts.
Santiment says that traders and investors should not be shocked if there is a slight cooling off leading up to Thanksgiving since a 30-day MVRV (market value to realized value) of above 15% is regarded as a bit of a danger zone.
Santiment Litecoin Price Analysis
For the first time since December 2, 2021, Santiment notes, the 365-day MVRV on Litecoin (now at 5.28%) shows that long-term traders are finally back in positive territory.
This crucial turning point may indicate some short-term optimism that could spark a price increase after the returns from shorter-term trading have slightly leveled off.
As observed on Binance, traders began shorting Litecoin in the middle of the whole FTX debacle, more frequently than they had in about five months.
At the same time, the funding rates on DyDx fell to their lowest in 11 months. Data shows that it was expected that there would at least be a Litecoin bounce to prompt a similar mass liquidation on Litecoin bulls, based on the price bottom that formed when Binance’s shorts hit these same levels in June.
The altcoin now trades at $92 at the time of writing, has achieved a $6.7 billion market cap.
So far, Litecoin has seen a bit of fall in terms of short term price action. With the halving scheduled in two days LTC could see some sell-offs and an occasional pump if hype persists.
Disclaimer: Voice of crypto aims to deliver accurate and up-to-date information, but it will not be responsible for any missing facts or inaccurate information. Cryptocurrencies are highly volatile financial assets, so research and make your own financial decisions.