After reaching a recent peak of $147 a fortnight ago, Litecoin’s [LTC] upward momentum has faced challenges.
The past day, in particular, has witnessed the altcoin experiencing its steepest drop, hitting a low of $94. As of the current moment, Litecoin is being traded at $96, reflecting an 11.09% decline on daily charts. Over the last week, the altcoin has seen a drop of 20.12%.
Despite the recent decline in its price trend, long-term holders of LTC remain positive and anticipate further growth.
Optimism Among Long-Term Litecoin Holders
IntoTheBlock reports that 78% of Litecoin addresses have preserved their LTC for over a year. These holders have been accumulating during bearish periods and selling close to peak prices.
While past cycles have witnessed a rise in the selling of long-term holdings, the current cycle has displayed a different pattern.
In this cycle, there has been a slight decrease in long-term holdings for LTC. Nevertheless, this reduction is less significant compared to preceding cycles, suggesting that fewer long-term holders are selling their LTC compared to previous bullish phases.
Consequently, many holders are hopeful for a surge in prices, still waiting for the peak in the ongoing cycle, showcasing confidence among long-term investors.
Interpreting LTC Market Trends
Despite the positive outlook of long-term investors, the overall market sentiment remains bearish.
This overarching bearish sentiment is evident as a majority of investors are taking short positions. According to Coinglass, the long/short ratio indicates a prevalence of short positions in the market, hinting at the anticipation of price declines.
Moreover, significant holders are displaying bearish behavior by reducing their investments in LTC. The netflow of Litecoin’s large holders has dwindled from 384.52k to 21.89k, indicating an outflow surpassing inflow for four consecutive days.
Furthermore, sellers have maintained control over the market for the last twelve days, as indicated by a sustained decline in the Relative Strength Index (RSI), which has fallen from 71 to 40, approaching oversold levels.
In summary, while long-term holders exhibit confidence, retail traders are cautious. Consequently, the market is currently influenced by short-term pessimism. If this sentiment persists, LTC could dip to $91.47. However, a broader adoption of the bullish stance among long-term holders could propel LTC back to the $100 mark.