Altcoins have started to move in the right direction as the market has built up on the recent bullish momentum. Litecoin has been one of the surprise inclusion which was facilitated growth from an on-chain perspective. While it may look great on paper, there are few more things that needs to incorporated and understood before estimating a Litecoin rally.
Active Addresses and Hodling Act?
According to Santiment, most altcoins were at a state of decline when it came to their daily on-chain statistics. However, Litecoin was following the other route, indicative of significant activity in the market. Data suggested that Litecoin’s 24-hour active addresses are currently witnessing all-time high levels for 2021. The rate of active addresses are higher than January-February 20201.
Similarly, addresses holding LTC between 1k-100k also raised their holdings by 270,000 LTC which is currently valued at ~$28.5 million. It is a massive accumulation of data which is suggestive that LTC holders are holding out for a bullish promise with the altcoin.
However, it is important to understand that the Litecoin market may not react proactively to these bullish signs.
Litecoin ASOL-MSOL state
Litecoin’s MSOL or Median Spent Output Lifespan indicates how the asset’s movement might have reacted during the past few weeks. Bitcoin’s MSOL chart reflected strong movement during the…