The market capitalization of Litecoin (LTC) increased by 15% in the past week, adding $1 billion as the price reached a two-year high of $129.18.
This strong upward move has prompted long-term holders to take profits. However, the LTC price increase shows signs of continuation.
Long-term LTC holders taking profits
On-chain assessment of LTC's Liveliness metric shows an increase in the number of coins moved or spent recently. According to Glassnode, this figure is currently at its highest level of the year at 0.71. Meanwhile, as of November 1st, LTC's Liveliness sharply decreased to its lowest level of the year at 0.69.
Liveliness provides insights into the spending behavior of long-term holders, measuring the ratio of coins that have been moved or spent recently. When the indicator spikes, many long-term holders are liquidating their positions.
Liveliness of LTC | Source: Glassnode
Notably, negative metrics from the net position change of LTC holders confirm the distribution trend from long-term holders. This index also tracks their behavior and has recorded negative values since November 2nd. In fact, on December 1st, this index closed at its lowest level of the year at -993,199.
When the net position change of holders is negative, it means that long-term holders are selling more than accumulating, indicating they are taking profits.
Net position change of LTC holders | Source: Glassnode
