Litecoin had over 327,000 active addresses on Friday, Sep.6, down from 801,000 in June.
LTC whale activity increases
Litecoin, a peer-to-peer cryptocurrency, remained in a consolidation phase as open interest in the futures market remained muted and as whale activity rose.
Litecoin (LTC), created by former Google engineer Charlie Lee, was trading at , where it has been stuck at in the past two weeks. This price is about 27% above its lowest point in August and down by 44% from its highest point this year.
Meanwhile, Litecoin’s funding rate has retreated from 0.078% earlier this week to 0.0016%. A positive funding rate means holders pay a fee to short position holders. With the funding rate nearing the negative zone, there is a risk that it may continue falling.
⚡️ Litecoin is seeing a consistently higher level of whale activity than usual since late August. On top of this, the level of discussions toward the 19th ranked market cap OG asset has erupted in a big way. Whether or not you are a fan of LTC, this is worth keeping an eye on. pic.twitter.com/qmxUu2dxBI
A break below that support level will point to a drop to the next key support at , its lowest point in August. However, a volume-supported move above the descending trendline will point to more gains.
According to Santiment, Litecoin has seen a significant increase in whale-buying activity in the past few weeks, a sign that some of them are buying the dip. Santiment has also observed a big increase in the number of social media mentions.
Futures open interest is an important metric in the financial market because it shows the outstanding contracts that are yet to be filled. In most cases, a higher open interest is a sign that a coin has more demand among investors.
The price action correlates with Bitcoin (BTC), which jumped to a record high of ,800 in March, dropped to ,000 in August and was trading at ,000.
