Coinspeaker Litecoin (LTC) Whales Boost Exchange Inflows amid Price Decline
In the past week, there has been a notable increase in the movement of Litecoin (LTC) coins held by large investors to cryptocurrency exchanges. This uptick coincides with LTC’s declining value.
The cryptocurrency is currently trading at a 15% loss over the past seven days. Large holders seem to be taking action to mitigate potential further losses amid these market conditions.
Rising Selling Pressure from LTC Whales
On-chain data indicates a sharp rise of over 464% in large holders’ netflow to exchanges within the past seven days. This surge suggests that significant amounts of LTC are being moved from large holders’ wallets to exchanges, indicating potential sell-offs and adding to downward pressure on prices.
Photo: IntoTheBlock
A further analysis of LTC’s financial metrics discloses why its major holders are divesting. Currently, 5.93 million addresses, comprising 72% of all LTC holders, find themselves “out of the money”. An address falls into this category when the current market value of its holdings is below the average purchase price of those tokens.
Technical indicators, including the Moving Average Convergence Divergence (MACD), confirm the bearish sentiment surrounding LTC. The MACD assesses the momentum and trends in asset prices. In the case of LTC, the MACD line (blue) remains below both the signal line (orange) and the zero line, indicating strong selling momentum.
Photo: TradingView
If this trend continues, LTC price could further decline, possibly testing support levels around $63.98. Traders and analysts are closely monitoring LTC whale activities to navigate future price action amid market volatility.
About Litecoin
Litecoin (LTC), launched in 2011 by Charlie Lee, is a peer-to-peer cryptocurrency designed to complement Bitcoin. Often referred to as “silver to Bitcoin’s gold,” Litecoin operates on a decentralized blockchain and offers faster transaction confirmation times than Bitcoin, thanks to its adoption of the Scrypt hashing algorithm.
Over the years, Litecoin has maintained its relevance in the cryptocurrency space, becoming a widely traded digital asset on various exchanges and serving as a testbed for Bitcoin improvements, Litecoin currently holds a market valuation of just over $4 billion, ranking it as 23rd largest cryptocurrency by market capitalization.
Coinbase Derivatives recently introduced margined futures for LTC, becoming the first CFTC-regulated exchange to offer such products. This move highlights Litecoin’s increasing adoption in institutional financial markets, signaling its ongoing development and growing relevance in the broader financial landscape.
Litecoin’s 12-Year Uninterrupted Uptime
Litecoin (LTC) recently marked a significant milestone with 12.5 years of continuous uptime since its launch in 2011. This achievement stresses Litecoin’s reliability and resilience in the cryptocurrency space, maintaining uninterrupted operation amidst market fluctuations and technological advancements.
Litecoin underwent a halving event in August 2023, reducing the block reward from 12.5 LTC to 6.25 LTC per block. This deflationary measure aims to manage inflation and sustain the longevity of LTC’s reward system. Over the years, Litecoin has seen multiple upgrades, solidifying its position as a prominent cryptocurrency with a capped supply of 84 million coins.
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Litecoin (LTC) Whales Boost Exchange Inflows amid Price Decline