• Crypto & Funx
• 25 Jun, 2024

Short-term Litecoin holders increased their holdings by 31% over the past month.

Indicators show Litecoin may be oversold, suggesting a potential price rebound.

IntotheBlock has shared some insights about Litecoin activity that appears to suggest that a market bottom or price spike might soon happen. Moments ago, the on-chain analytics platform took to its account on X to release about the volume of Litecoin that is being held by short-term investors. According to IntotheBlock, this metric has increased by 31% in the last month.

Meanwhile, the data released has sparked optimism among enthusiasts of the coin. That is, considering its behavior in the past.

Historically, a surge in short-term holdings usually marks a turning point in the market. It either shows that the price has bottomed or a price jump is about to start.

Whichever the case might be, a surge in short-term LTC holdings is never just a random occurrence.

Potential for Litecoin Price Rebound amid Oversold Conditions and Increased Accumulation

Short-term holders, who are so-called for the fact that they typically seek quick profits, often accumulate LTC in anticipation of an upward price movement.

However, for these spikes in holdings to really impact the market and price movement, there has to be an increased market activity happening alongside.

At the time of writing, Litecoin saw a price jump of over 9% in the past 24 hours on the Coinspeaker price data and was seen trading at $6.91. This suggests that the uptrend might already have begun.

Moreover, indicators such as the Relative Strength Index (RSI) and Commodity Channel Index (CCI) also show that LTC had reached oversold conditions. These also suggest that the market is in a settled state and well poised for a potential surge.

LTC Picks Up against Bitcoin

When comparing Litecoin to Bitcoin , the altcoin has faced a very long downtrend. However, LTC’s price has suddenly picked up pace against Bitcoin, gaining 5.54% over the latter in the last 24 hours. That is, according to data from TradingView.

This, as some experts argue, is a sign that LTC might be gaining more strength in the current market.