Long-Term Litecoin Holders Actively Accumulating Assets: Potential Impact on LTC Price
Date: 2023-10-21 Author: Dima Zakharov Categories: CRYPTO PAYMENTS
The recent months have been unsuccessful for Litecoin
In recent months, Litecoin has faced challenges, with its price largely stagnating in a narrow range between $61 and $65 over the last month. However, recent developments suggest that Litecoin may be on the verge of a breakthrough.
Long-term holders are actively accumulating LTC
A significant development that could potentially impact Litecoin's future price is the active accumulation of this cryptocurrency by long-term holders. Following the third Litecoin halving that occurred on August 2, 2023, the asset's price experienced a 46% drop. Nevertheless, data from the analytical platform Glassnode indicates that since October 5, long-term holders have been actively acquiring substantial volumes of Litecoin. From October 13 to 17, they consistently increased their balances by more than 400,000 coins daily. On October 15, this number reached its peak, with over 413,949 LTC acquired in a single day. These actions highlight the confidence of long-term holders in Litecoin's future.
Historical data shows that an increase in the Holder's Net-Inflow metric, which evaluates the daily increase in coins in the wallets of investors holding the asset for over a year, has been associated with Litecoin price growth. In the past, three instances of such sharp rises in Holder's Net-Inflow led to price increases of at least 25%. These occurrences were observed in October 2020, June 2021, and February 2022. If this pattern repeats itself this time, Litecoin holders may anticipate a retest of the $75 level in the coming weeks.
Sellers still dominate
Despite the active purchases by long-term holders, short-term investors and traders remain skeptical. Charts indicate that sellers continue to dominate the market, with traders placing sell orders for 2.2 million LTC and buy orders for 1.6 million LTC on cryptocurrency exchanges. This suggests that short-term market participants remain uncertain about the prospects for Litecoin price recovery.
LTC Price Forecast: Bulls Target $75
Data from Global In/Out of the Money, which groups current Litecoin holders by price distribution, hints at a potential price increase to $75 or higher. However, it's worth noting that there is a significant number of holders who bought LTC at the maximum price of $65.19. These holders may represent significant resistance on the path to this target.
Considering the active accumulation of Litecoin by long-term holders and the skepticism of short-term investors, the future of LTC price remains uncertain. However, by monitoring the dynamics of long-term holders and the market's response to their activity, investors and traders can expect interesting developments in the world of Litecoin.
