Leading crypto intelligence firm Santiment is revealing some bullish on-chain metrics that are developing for Litecoin (LTC) behind the scenes.
LTC is trading at $148 at time of writing, down 64% from its all-time high of $410 in a hard downtrend. Despite this, Santiment says crypto whales may have other plans for the early Bitcoin (BTC) competitor.
According to the firm, “smart money” Litecoin whales are on a 15-week accumulation streak, something that hasn’t been seen since 2017.
“Litecoin is showing some signs of life, up about +5% against BTC in the past two days. Whale addresses holding 10,000 to 1,000,000 LTC are in a 15-week accumulation pattern that is their longest since 2017. They have added 5% of LTC’s supply in just 15 weeks.”
Santiment also says that privacy-focused blockchain Monero (XMR) is showing some under-the-radar signals that could be bullish. According to the firm, Monero is being discussed in forums at its highest rate in 10 months.
“Monero has decoupled from the crypto pack on a down Thursday. The asset has been quiet since hitting $513 back on May 7, 2021. But with XMR being one of the few pumping coins currently, it’s seeing the highest forum discussion rate in 10 months.”
Looking at BTC and the broader market, Santiment says that traders may be getting too confident in predicting further price drops.
Historically, the firm says that current conditions often lead to short squeezes, which is when an excessive number of traders attempt to short the market only to get hit with an unexpected price bump that leads to a cascade of liquidations that push the price up even further.
“Bitcoin and several other altcoins reveal a higher short-to-long ratio than usual, indicating traders are expecting prices to drop. Traditionally, when this funding rate ratio is extremely negative, shorts are primed to be liquidated and prices rise.”