- 78% of Litecoin addresses have held their LTC for over a year.
- LTCs decreased by 11.09% in the last 24 hours.
Since hitting a recent high of $147 two weeks ago, Litecoin (LTC) has struggled to maintain bullish momentum.
Over the past 24 hours, the altcoin saw the biggest decline, reaching a local level of $94. In fact, at the time of writing, Litecoin was trading at $96. This represents a decline of 11.09% on the daily charts. Likewise, the altcoin fell by 20.12% over the past week.
Despite the recent drop in its price charts, long-term holders of LTC remain optimistic and expect more gains.
78% of long-term Litecoin addresses remain bullish
According to IntoTheBlock, 78% of Litecoin addresses have held their LTC for over a year. These addresses accumulated during bear markets and sold near peak prices.
Source: In the block
While previous cycles have seen an increase in sales of long-term assets, this cycle has been different.
During this cycle, LTC saw a slight decline in long-term holdings. This reduction is, however, less pronounced compared to previous cycles. This indicates that fewer long-term holders are selling their LTC compared to previous bull markets.
Therefore, many holders are expecting further price growth as they are still waiting for the top of the current cycle. This signals optimism among long-term holders.
What the SLD Charts Suggest
Although long-term holders have sold less than in other cycles and remain optimistic, the overall market remains bearish.
Source: Coinglass
So we can see this bearish trend because most investors are taking short positions. According to Coinglass, the long/short ratio shows that those who take short positions dominate the market. This implies that most traders expect prices to fall.
Source: In the block
Moreover, large holders are also pessimistic and have continued to reduce their capital inflows into LTCs. As such, the large Litecoin holder’s net flow decreased from 384.52k to 21.89k.
This implies that outflows have exceeded inflows for 4 consecutive days.
Source: Tradingview
Finally, sellers have dominated the market over the past 12 days. This dominance is evidenced by a sustained decline in the relative strength index. The RSI fell from 71 to 40, approaching oversold territory.
Read Litecoin (LTC) Price Forecast 2024-2025
In conclusion, while long-term holders are optimistic, retail traders are not. Thus, the market is experiencing negative sentiment in the short term. If this sentiment persists, LTC could fall to $91.47.
However, if optimism from long-term holders spreads to the broader market, LTC will regain the $100 levels.
