It has been two weeks since Litecoin [LTC] touched a 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 decline, with the price once dipping to $94. As of the time of writing, Litecoin's trading price remains around $96, marking an 11.09% drop recorded on its daily chart. It is also noteworthy that over the past week, LTC's value has shrunk by 20.12%.
Despite the recent price pressure on LTC, there is still a voice of optimism 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 the phenomenon of intensified selling by long-term holders in previous cycles, this cycle exhibits new characteristics. Although LTC's long-term holdings have slightly decreased in this cycle, this decline is not significant 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 that long-term holders maintain an optimistic attitude.
LTC chart suggests what
Although the selling volume of long-term holders is lower and remains optimistic compared to other periods, the overall market is still bearish.
Thus, we can see 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 fall.
In addition, whales are also bearish, continuously reducing the inflow of funds into LTC, with the net inflow of Litecoin whales declining from 384,520 to 21,890.
This means that outflows have exceeded inflows for four consecutive days.
Finally, during the past 12 days, sellers have dominated the market. The continued decline of the relative strength index proves the dominance of sellers. The RSI fell from 71 to 40, approaching the oversold zone.
In summary, while long-term holders maintain an optimistic stance, retail traders are not so optimistic. Therefore, the market is experiencing short-term negative sentiment. If this sentiment persists, LTC could drop to $91.47.
However, if the bullish sentiment of long-term holders spreads throughout the market, LTC will reclaim the $100 level.
