In the past 24 hours, altcoins have experienced the largest decline, with LTC dropping to $86.5. In fact, at the time of writing, the price of Litecoin has rebounded slightly to $96, showing a small increase of 4.72% over the past 24 hours.
Despite the recent decline in LTC prices, long-term holders of LTC remain optimistic and expect further increases.
78% of long-term Litecoin addresses remain bullish.
78% of Litecoin addresses have held LTC for over a year. These addresses continuously accumulated during the bear market and sold near price peaks.
Although there have been increases in long-term holders selling stocks in previous cycles, this cycle is different.
In this cycle, the long-term holding of LTC has slightly decreased. However, this decline is not significant compared to previous cycles. This indicates that there are fewer long-term holders selling LTC compared to previous bull markets.
Therefore, many holders expect prices to rise further as they are still awaiting the peak of the current cycle. This indicates that long-term holders maintain an optimistic attitude.
Litecoin repeats the pattern after the 2020 election.
Analyzing the price trend of LTC/USD in 2020 and the recent 2024 data, interesting similarities were found, further supporting LTH.
Both periods exhibited significant fluctuations before and after the U.S. elections, accompanied by substantial price increases.
At the end of 2020, the price of Litecoin rose from around $60, reaching a peak of over $160 in early 2021.
The pattern in the fourth quarter of 2024 is similar to the rapid price increase after the election, indicating further potential for price increases.
Historically, these election-related rebounds have shown significant increases during the New Year period. If the current pattern holds, Litecoin may break through the $200 mark in early 2025.
As 2024 approaches its end, strong buy signals and increased trading volumes are similar to conditions in 2020.
This not only indicates the cyclic nature of Litecoin but also shows the influence of broader market sentiment during elections.
This suggests that Litecoin may be in a condition to rise again, as seen previously.
What does the LTC chart suggest?
Finally, in the past 12 days, sellers have dominated the market. The continuous decline of the relative strength index proves the dominance of sellers. RSI dropped from 71 to 40, approaching the oversold area.
In summary, while long-term holders are 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 of long-term holders spreads across the market, LTC will reclaim the $140 level.
