This Bitcoin Offshoot Could Turn Bullish Again Despite Continued Losses, Says Analytics Firm: ‘Small Fish Impatiently Jumping Ship Is Often A Turnaround Sign’
By Benzinga
Litecoin (CRYPTO: LTC) has witnessed an extended downturn in recent weeks, but a prominent cryptocurrency analytics firm anticipated the sentiment to turn bullish for the Bitcoin (CRYPTO: BTC)-inspired token.
What Happened: According to an X post on Monday, Santiment noted a substantial 36% decline in Litecoin’s market value from its April peak. Surprisingly, small traders, or wallets holding between 0.1 and 1 LTC, continued to increase during this time.
However, in a dramatic development, the total number of wallets in the aforementioned cohort plunged by 45,200, indicating that small traders were finally capitulating on the proof-of-work cryptocurrency.
“Small fish impatiently ‘jumping ship’ is often a turnaround sign for an asset to begin turning bullish once again,” Santiment added.
Why It Matters: Forked out of Bitcoin, Litecoin was one of the earliest altcoins on the market, and is often dubbed “the silver to Bitcoin’s gold.”
Aside from Bitcoin, Litecoin is one of the few cryptocurrencies that have evaded a “security” probe by U.S. regulators. It’s also the most used cryptocurrency for payments, according to the world’s largest crypto payment service provider, BitPay.
However, these fundamental advantages have failed to significantly boost the cryptocurrency’s market valuation. As of this writing, Litecoin was one of the few billion-dollar capitalization tokens with year-to-date losses, totaling 13%.
In contrast, Bitcoin has surged 48%, while Ethereum (CRYPTO: ETH) and Solana (CRYPTO: SOL) have grown 17% and 54%, respectively.
Despite the current market downturn, Santiment’s analysis suggests that Litecoin could be on the verge of a turnaround. This could be a crucial development for investors and traders to watch in the coming weeks.
Price Action: Litecoin was exchanging hands at $80.97 at the time of publication, falling marginally by 0.19% in the last 24 hours, according to data from Benzinga Pro.
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