Most of the top cryptocurrencies by market cap have outperformed Litecoin since the sharp drop in mid-March.
Since then, Bitcoin and Ethereum have increased by more than 130%. Even XRP, which is believed to be underperforming in the crypto market, has increased by almost 88%. Meanwhile, LTC increased only 84%.
Although such a move is quite large, when compared to the general market level it looks very small. However, on-chain figures are revealing that Litecoin may be preparing for one. strong price increases.
Litecoin’s social activity metrics explode
Data from Santiment reveals that since mid-April, Litecoin’s social activity has spiked year-over-year.
During the first quarter of 2020, the amount of information about LTC mentioned per 1,000 crypto social media channels was hovering around 70. But as Q2 kicked off, Litecoin’s social activity count has exploded, reaching a score of 722 by the end of April.
Historically, this altcoin usually starts an uptrend as social activity metrics go up, which is also possible for now.
In addition to social activity, the token’s age chart also adds credibility to the bullish outlook. This metric is used to measure the amount of tokens transferred from one address to another on a given day and the time since they were last moved, according to Santiment.
While this movement doesn’t necessarily mean the LTC price will go up, the correlation between this price and signal has been developing over the past three months.
For example, when the Litecoin price dropped as much as 50% between March 12 and 13, over 200 million inactive LTC tokens were moved to different addresses. After that, this cryptocurrency increased by more than 76%.
A similar event took place on April 16. After a 20% retreat, a large number of tokens changed hands, resulting in a 17% increase.
Now that almost 107 million LTC tokens have been moved to different addresses on May 18, history could be about to repeat itself.
IntoTheBlock’s “In / Out of the Money Around Price” (IOMAP) pattern shows that Litecoin is facing strong resistance ahead. About 75,000 addresses are selling more than 1.24 million LTC between $ 47 and $ 48.4. Such a large bow wall could put an end to the momentum.
But if this level is conquered, the LTC price could rise to the $ 70 level. IOMAP shows that there aren’t any significant barriers between these prices.
Given the unpredictability of the crypto market, it is essential to consider the other side of the trend. If the selling pressure behind Litecoin starts to increase, then the closest support to watch out for is $ 43, lower is at $ 39.