It has been two weeks since Litecoin [LTC] hit the recent price peak of $147, and it has faced significant challenges in maintaining its upward trajectory.
During the observation period of the past 24 hours, this altcoin experienced the most significant drop, with prices briefly hitting a low of $94. As of the time of writing, Litecoin's trading price remains around $96, marking a 11.09% decline on its daily chart. It is also worth noting that over the past week, LTC's value has shrunk by 20.12%.
Despite LTC's recent price pressure, there are still optimistic voices among long-term holders who firmly believe that LTC has room for growth in the future.
Specifically, 78% of long-term Litecoin holding addresses maintain a bullish stance.
Unlike previous cycles where long-term holders increased selling, this cycle exhibits new characteristics. Although LTC's long-term holding volume has slightly declined this cycle, this reduction is not pronounced compared to previous cycles. This change indicates that the number of long-term holders choosing to sell LTC has decreased compared to historical bull markets.
Therefore, many holders expect prices to rise further as they continue to wait for the peak of the current cycle. This indicates an optimistic attitude among long-term holders.
What do the LTC charts suggest?
Although long-term holders have sold less compared to other periods and remain optimistic, the overall market is still bearish.
Thus, we can observe this bearish sentiment, as most investors hold short positions. According to Coinglass, the long/short ratio indicates that those holding short positions are dominating the market. This means that most traders expect prices to decline.
Additionally, large holders are also bearish, continuously reducing their inflows into LTC, with the net inflow for Litecoin large holders decreasing from 384,520 to 21,890.
This indicates that outflows have exceeded inflows for four consecutive days.
Finally, for the past 12 days, sellers have dominated the market. The ongoing decline of the Relative Strength Index (RSI) confirms the dominance of sellers. The RSI dropped from 71 to 40, approaching the oversold territory.
In summary, while long-term holders remain optimistic, retail traders are not. Therefore, the market is experiencing short-term negative sentiment. If this sentiment persists, LTC could drop to $91.47.
However, if the bullish sentiment among long-term holders spreads to the entire market, LTC will reclaim the $100 level.
