As LTC generates rewards for its holders, Litecoin’s demand is rising.
According to Santiment’s tweet on X (previously Twitter), on April 2, Litecoin [LTC] surged by about 10%, spearheading the altcoin market bounce during that day’s intraday trading session.
The on-chain data service claims that the coin’s price spike during the previous month was caused by a rise in transaction volume.
The daily transaction volume of LTC increased by 124% over the previous month when measured using a 30-day moving average.
Santiment added that the resurgence of dormant whale addresses, which shifted their coins around to profit from LTC’s month-long price increase, was the cause of the price increase.
This indicator shows how long investors have held their assets in relation to the state of the market.
An increase in the statistic indicates that more investors are likely to stay onto their coins for extended periods of time as opposed to trading them often. There is a decrease in coin supply and a decrease in trade activity at this time.
On the other hand, a fall in the measure indicates increased market activity as coins are exchanged more quickly, increasing the total quantity of coins in circulation.
Optimistic outlook holds firm
LTC was trading at $103 at the time of writing, having seen a double-digit price surge during the previous month, according to data from CoinMarketCap.
A 24-hour chart displaying key momentum indicators indicated that demand for the coin was increasing. As of this writing, its Money Flow Index (MFI) was 65.18, and its Relative Strength Index (RSI) was 57.72.
These indicators, whose values were above the center lines of each, demonstrated that market participants favored increasing their LTC holdings over selling them.
April 2024, Cryptoniteuae
