Following a recent peak of $147 just a fortnight ago, the journey for Litecoin [LTC] has been one of struggle, with challenges in sustaining an upward trajectory.
The past 24 hours have been particularly tough for the altcoin, witnessing a significant dive to a low of $94. Presently, Litecoin is being traded at $96, reflecting an 11.09% decrease on daily charts. Over the course of the week, the altcoin has seen a decline of 20.12%.
Despite the recent price slump, those who have been holding LTC for the long term continue to remain positive, expecting favorable returns.
Optimism Persists Among 78% of Long-Term Litecoin Holders
According to data from IntoTheBlock, 78% of Litecoin addresses have maintained their LTC holdings for over a year. These holders have been accumulating during bear markets and selling near peak prices.
Unlike previous cycles where there was typically an increase in the selling of long-term holdings, the current cycle is bucking the trend.
Although there has been a slight decrease in LTC long-term holdings this time around, it is not as significant as seen in past cycles. This suggests that fewer long-term holders are cashing out their LTC as compared to earlier bullish market phases.
Therefore, with many holders eagerly anticipating further price appreciation, their patience for the current cycle’s peak reveals a sense of hope and positivity among long-term investors.
Analysis of LTC Charts
While the optimism of long-term holders remains intact, the overall sentiment in the market leans towards bearish.
This bearish posture is evident as a majority of investors are opting for short positions. As per Coinglass data, the long/short ratio indicates a prevalence of traders positioning for price declines, leading the market trend.
Furthermore, substantial holders are displaying a bearish outlook by reducing their investment inflows into LTC. Notably, Litecoin’s netflow from large holders has dwindled significantly from 384.52k to 21.89k.
This ongoing pattern underscores a continuous outflow surpassing the inflow for a consistent period of 4 days.
Adding to the downward pressure, sellers have been dominating the market for the past 12 days. This dominance is reflected in the continuous decline of the Relative Strength Index, with the RSI plummeting from 71 to 40, nearing the oversold region.
In wrapping up, while the confidence of long-term holders persists, retail traders are exhibiting a contrasting stance. Consequently, the current market sentiment is cast in a transient negativity. Should this sentiment persist, Litecoin could potentially slide down to $91.47.
However, a widespread adoption of the bullish outlook among long-term holders could pave the way for LTC to reclaim the $100 price levels.