78% of Litecoin addresses have held their LTC for more than a year.
LTC has decreased by 11.09% in the past 24 hours.
Since reaching a recent high of 147 USD two weeks ago, Litecoin [LTC] has struggled to maintain upward momentum.
The past 24 hours have particularly seen the largest price drop of the altcoin, reaching a low of 94 USD. In fact, at the time of writing, Litecoin is trading at 96 USD. This records a decrease of 11.09% on the daily chart. Similarly, the altcoin has dropped by 20.12% in the past week.
Despite the recent price decline on the chart, long-term LTC holders remain optimistic and expect to receive more profits.
78% of long-term Litecoin addresses still maintain optimism
According to IntoTheBlock, 78% of Litecoin addresses have held their LTC for more than a year. These addresses accumulated during bear markets and sold near the all-time highs.
Source: IntoTheBlock
While previous cycles have seen an increase in selling by long-term holders, this cycle has been different.
During this cycle, LTC has seen a slight decrease in long-term holdings. However, this decrease is less pronounced compared to previous cycles. This indicates that fewer long-term holders are selling their LTC compared to previous bullish markets.
Therefore, many holders are waiting for price increases, as they are still shedding leaves during the current cycle. This signifies optimism among long-term holders.
Suggestions from the LTC chart
While long-term holders have sold less compared to other cycles and still maintain optimism, the overall market remains bearish.
Source: Coinglass
Accordingly, we can see this pessimism as the majority of investors are choosing short positions. According to Coinglass, the long/short ratio indicates that short sellers dominate the market. This implies that most traders predict a price decrease.
Source: IntoTheBlock
Furthermore, major investors also hold a negative outlook and continue to reduce their capital inflow into LTC. Thus, the net capital flow of large Litecoin holders has decreased from 384.52K to 21.89K.
This implies that outflows have outpaced inflows for 4 consecutive days.
Source: Tradingview
Finally, sellers have dominated the market in the past 12 days. This dominance is evidenced by the steadily declining Relative Strength Index. The RSI has dropped from 71 to 40, nearing the oversold threshold.
In summary, while long-term holders remain optimistic, retail traders do not. Thus, the market is experiencing short-term negative sentiment. If this sentiment holds, LTC may drop to 91.47 USD.
However, if the optimism of long-term holders spreads across the market, LTC will reclaim the 100 USD level.
