Litecoin price reaches $119.64, market cap grows by $1 billion.
On-chain indicators show significant profit-taking by long-term holders.
Technical analysis indicates that despite facing selling pressure, the upward momentum remains strong.
Litecoin has shown extraordinary strength in the cryptocurrency market, with its market cap expanding by $1 billion over the past week.
A 15% increase pushes the price to an important milestone of $119.64, a level not seen in two years. This price movement creates an interesting dynamic between the behavior of long-term holders and the ongoing market momentum.
The story behind the activity of long-term Litecoin holders.
The activity indicator is a complex on-chain metric that has reached a high of 0.71 year-to-date, showing significant change compared to the low of 0.69 on November 1. This LTC metric serves as a window into the behavior of long-term holders, measuring the proportion of circulating tokens that have recently moved.
The current high readings indicate that many long-term holders are choosing to take profits after holding at low prices for an extended period.
The Hodler net position change indicator further validates this distribution trend, remaining negative since November 2 and reaching a year-to-date low of -993,199 on December 1.
This sustained negative reading suggests that long-term holders are offloading their positions at a faster rate than new positions are being established, representing a significant shift in market dynamics.
Although long-term holders are clearly in the distribution phase, the technical structure of the Litecoin market remains notably positive. Prices continue to trade above the Ichimoku Cloud, a comprehensive technical indicator that combines various factors to assess trend strength and potential support/resistance levels.
Positioning above the cloud indicates that the current upward momentum remains intact and may push the price up to $143.41, a level not seen since January 2022.
While the selling pressure from long-term holders may often be interpreted as a warning signal, the strong technical structure suggests that new buyers are quickly absorbing this supply.
However, market participants should continue to pay attention to the support level of $107.58, as any significant increase in selling pressure could trigger a test of that area. The interaction between the distribution of long-term holders and the demand from new buyers may determine the sustainability of the current upward trend.
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