The number of long-term holders of Litecoin exceeded 5 million: how this will affect the price of LTC
Date: 2023-09-10 Author: Karina Ziganova Categories: BLOCKCHAIN
The native token of one of the oldest blockchains, Litecoin, is going through hard times: after the third halving, the price of LTC fell by almost 50%.
However, Litecoin investors appear to remain optimistic about the project's long-term prospects. Key on-chain metrics indicate that the number of long-term LTC holders has reached an impressive 5 million.
The number of Litecoin hodlers continues to grow
This week, the number of long-term LTC holders reached a new all-time high of 5 million addresses, according to analytics platform IntoTheBlock.
Long-term holders or “hodlers” are considered investors who have owned the coins for at least a year. Note that this criterion may vary depending on the specific platform: some on-chain analysis platforms include investors in this cohort who hold the asset for 5-6 months.
The graph below shows how the number of long-term holders has changed over recent years.
Interestingly, the number of “hodlers” continues to increase even despite the weak price dynamics of Litecoin. This indicates investors' confidence that the asset will bring them significant profits in the long term.
Whales got rid of 370,000 LTC
However, large investors seem to be planning to wait for an even deeper correction, and only then start buying. The Santiment chart shows that between August 8 and September 8, the total holdings of wallets with a balance of 10,000 to 10 million LTC decreased by 320,000 coins.
At the current market value of $62.79, the tokens sold by whales over the past month are valued at approximately $20 million. If retail investors follow suit, LTC is in danger of falling below the critical support level of $60.
Litecoin price forecast: attempt to break above $69 may turn into failure
Typically, an increase in the number of long-term holders has a positive effect on the value of the cryptocurrency, as it causes a reduction in the supply of LTC available on the market. However, the short-term prospects for Litecoin do not look so rosy.
The Global In/Out of Money Around Price (GIOM) data, which reflects the distribution of purchase prices among current asset holders, also speaks in favor of a continued decline.
Even if the bulls gather their strength, they will be blocked by 3.15 million addresses that purchased 3.15 million LTC at an average price of $67, and another wall of 1.32 million addresses with a balance of 8.2 million coins purchased at an average price price $77.35. A breakthrough of such powerful resistance looks unlikely.
Increased bearish sentiment in the market will lead to another fall below $60. The 224,580 wallets holding 2.1 million Litecoin at an average price of $60.55 could slow down the downward movement. But if they don't hold, LTC will hit a new 2023 low at the key $50 level.
