Litecoin (LTC) has been on a significant rally recently, with new data showing that 65% of investors are currently making profits.
In the last month, LTC has gained 20.42% and reached $98, creating a strong sense of optimism in the markets. According to a report from IntoTheBlock, "With the price increase, we have reached the highest number of profitable investors since April," drawing attention to Litecoin's recent performance.
65% of Litecoin Investors Earn
According to IntoTheBlock’s data, 65.39% of Litecoin investors are currently in profit. This marks the first major increase in profitable addresses since April. This recovery is a significant indicator of market expectations and investor confidence. However, 26.72% are still in loss and 7.89% are at breakeven. This high rate of profit can often lead to downward pressure on prices as investors look to take profits.
Historically, many investors who bought LTC in 2021 saw peaks of $413 in May and $302 in November, but these investors are currently still losing money. Litecoin is trading around 78% below its all-time high, suggesting that a significant price move may be needed for long-term investors to breakeven.
When evaluating the impact of profit structure on the LTC price chart, it is important to consider market indicators and general market conditions. The rise in the last month suggests that Litecoin has more potential for gains, reflecting a positive change in market sentiment. LTC’s moving average convergence divergence (MACD) indicator is giving bullish signals, suggesting that this upward move could continue.
In addition, the decrease in net flows of large investors to exchanges from 5.8% to 1.01% is considered a sign of increasing confidence in this segment. The decrease in large transfers usually indicates the accumulation phase in bull markets. Large investors, known as ‘whales’, play an important role in determining market trends. Recent data shows an increase in large transactions by these whales, indicating an increase in their tendency to accumulate Litecoin and target future price gains.
Litecoin’s future looks set for a strong price rally under current conditions. High buying activity and an increase in the percentage of investors making profits are notable as indicators of the current bull market. However, it should be noted that investors who bought LTC at high prices in 2021 and lost money may be tempted to sell when the price approaches its peak again. This highlights the importance of closely monitoring market sentiment.
If the current uptrend continues, LTC is likely to hold the $98 level and move towards $105 in the short term. In this process, Litecoin’s buying and selling pressure in the market will be one of the main factors that will shape its future price movements.
