Little fish Litecoin (LTC) is a “jumping boat”, that’s what it means

Litecoin’s value has plunged 36% since its peak on April 1. The crypto asset hasn’t been generating much buzz on social forums either, according to the latest data.

Meanwhile, a certain cohort of small LTC holders have quietly exited the market. However, this has sparked interest in a potential bullish reversal shortly.

According to Santiment’s findings, there has been a sudden liquidation of 45.2 thousand net wallets holding between 0.1 and 1 LTC, suggesting that small traders are losing confidence and capitulating to Litecoin.

This exodus of small-scale owners, often referred to as “small fish”, could be a significant indicator of a potential bullish turn, as such behavior historically precedes price bounces in established assets like Litecoin.

The cryptanalytic platform tweeted,

“Small fish impatiently ‘jumping ship’ are often a sign of a turnaround for an asset to start turning bullish once again.”

Jay Milla, the director of the Litecoin Foundation, recently shared data collected by IntoTheBlock, which revealed a significant growth in activity on the Litecoin chain.

He noted that volume on the chain has more than doubled over the past year, demonstrating the growing use and robustness of the network.

Specifically, volume increased 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 increase in on-chain transactions could evidence growing adoption, even amid market fluctuations.

Litecoin is currently trading at $63 after a modest drop of almost 2% over the past day.

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