Litecoin price reached $119.64, with a market cap increase of $1 billion.
On-chain indicators show long-term holders are taking substantial profits.
Technical analysis indicates that despite facing selling pressure, the upward momentum remains strong.
Litecoin has exhibited extraordinary strength in the cryptocurrency market, with its market cap expanding by $1 billion over the past week.
A 15% increase pushed 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 variation 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 elevated readings suggest that many older holders are choosing to take profits after holding for a long time at low prices.
The Hodler net position change indicator further validates this distribution trend, remaining in negative territory since November 2, and hitting a year-to-date low of -993,199 on December 1.
This sustained negative reading indicates that long-term holders are reducing their positions faster than new positions are being added, representing a significant shift in market dynamics.
Despite long-term holders clearly being in a distribution phase, the technical structure of the Litecoin market remains distinctly positive. Prices continue to trade above the Ichimoku Cloud, which is a comprehensive technical indicator that combines multiple factors to assess trend strength and potential support/resistance levels.
Positioning above the cloud indicates that the current upward momentum remains intact and may drive 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 indicates that new buyers are quickly absorbing this supply.
However, market participants should continue to focus on the support level of $107.58, as a significant increase in selling pressure could trigger a test of this area. The interaction between the distribution of long-term holders and the demand from new buyers may determine the sustainability of the current rally.
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