Litecoin – Large withdrawals and how they might dictate LTC’s price action
Though Litecoin’s [LTC] price has been able to regain a part of its losses, it faces an uphill challenge ahead of it. AMBCrypto discovered this after analyzing the altcoin’s Large Holders Netflow.This week, Litecoin’s price could not resist plunging like the rest of the market. On 5 July, the value of the cryptocurrency tumbled to $57.55. However, the last 24 hours came with a 7.05% hike as LTC changed hands at $62.50.Litecoin hotshots are leaving the coinDespite the hike though, it is uncertain if the cryptocurrency will sustain its latest jump. In fact, according to data from IntoTheBlock, Large Holders Netflow was down 95.84% in the last 7 days, at the time of writing.
Put simply, the metric is the difference between the Large Holders Inflow and the Large Holders Outflow. For context, large holders are addresses holding at least 0.1% to 1% of the total circulating supply.
When the netflow is positive, large investors are accumulating more than they are selling. On the contrary, when it is negative, it implies that these holders are selling more than they are buying. This is the case with LTC too.
Should the metric remain negative, Litecoin’s uptrend might be halted. However, if the inflows begin to outpace outflows, the value could trade above $60 in the short term, and possible move closer to $70.
That being said, AMBCrypto considered it necessary to evaluate other datasets to lend some insights into LTC’s potential direction. To do this, we evaluated the altcoin’s Investor Capitalization.
LTC’s price close to the bottom, could trade higher
This metric is the difference between Realized Cap and Thermocap. The outcome of this calculation indicates if the coin has hit the top or if the bottom is in.
If Investor Capitalization spikes, it suggests that the coin is close to the top of this cycle. However, if the reading is low, it means that the price is close to the bottom.
