Altcoins

Litecoin [LTC] is ready to celebrate, but here’s why whales could spoil the party

  • Excessive hash charge and no community outages had been indicative of a secured community.
  • LTC dropped by 3.15% at press time, sparking fears of a powerful pullback.

Few different cryptocurrencies have carried out in addition to Litecoin [LTC] in 2022’s bear market. Since hitting the lows of June 2022, each the value and market cap have greater than doubled in worth at press time, data from CoinMarketCap confirmed. 

A big a part of this could possibly be attributed to Litecoin’s fame as an environment friendly and safe community. As per a put up shared on Twitter, LTC claimed it had by no means been down since its launch in 2011, an element which might improve its utility as a fee choice.


Learn Litecoin’s [LTC] Worth Prediction 2023-24


Furthermore, the community’s hash rate hit an ATH just lately. That is typically thought to be a optimistic signal close to a community’s safety as unscrupulous assaults change into tough to execute on networks with excessive hash charge.

Whales pose a problem

Nonetheless, the holdings of small and huge Litecoin whales narrated a distinct story. As per information supplied by Santiment, the variety of addresses with greater than 1000 LTC cash has been on a falling slope within the final 12 days. 

Supply: Santiment

Moreover, after remaining subdued for the final three days, LTC witnessed a pointy soar in whale transaction rely at press time. This meant that enormous addresses indulged in profit-taking by liquidating their positions. 

This is also defined by MVRV Ratio. The community was overvalued and therefore in revenue. The growing MVRV Lengthy/Quick Distinction incentivized profit-taking by LTC hodlers, which might result in costs going south.

Supply: Santiment

Santiment had in reality issued a warning to traders that LTC might drop within the coming days attributable to a rise in promoting exercise amongst whales.

What’s subsequent for LTC?

Litecoin holders have locked in positive factors of over 30% for the reason that graduation of the bullish rally at first of the yr. The value broke out of the mid-term vary with a pointy transfer upward on 29 January. Nonetheless, on the time of writing, it fell by 3.15%, giving an early indication of a pullback.


Is your portfolio inexperienced? Try the LTC Revenue Calculator


The Relative Power Index (RSI) began to descend, which meant lowered shopping for stress. The On Steadiness Quantity (OBV) adopted an identical trajectory, validating the thought of whales’ profit-taking highlighted above. 

Supply: TradingView LTC/USD

Litecoin’s halving occasion is about six months away which can be its third after 2015 and 2019. Traditionally, LTC costs have soared within the aftermath of the occasion. It stays to be seen how the silver to Bitcoin’s [BTC] gold will carry out, main as much as the halving.

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