Litecoin (LTC) has displayed a long-term investment trend despite its recent decline. Data from IntoTheBlock reveals that 78% of Litecoin addresses have held their LTC for over a year, with many accumulating during bear markets and selling near peak prices.
However, the current cycle shows a less dramatic decrease in long-term holdings than previous cycles, suggesting that many investors expect further price growth.
Moreover, the ownership distribution of Litecoin has remained an essential indicator of market sentiment. According to the blue line on the graph, long-term holders have increased their LTC holdings since Jan. 2012.
This trend highlights investors’ ongoing commitment to holding onto their assets for extended periods. Conversely, the grey line tracking the “Traders” category reveals more volatile behavior, as short-term holders frequently react to market price fluctuations.
These long-term trends contrast with Litecoin’s price history, which has been characterized by significant volatility. Major price spikes in 2017 and 2021 coincided with the broader market booms, while prolonged dips from mid-2018 to early 2020 reflected periods of broader market downturns.
Litecoin price movement and market activity
As of press time, Litecoin has experienced a sharp decline, dropping 16.17% in the past 24 hours to $92.59. This downturn has also affected its market capitalization, which has decreased by 18.06%, bringing it down to approximately $6.97 billion.
Despite the drop, Litecoin’s trading volume has remained at $1.78 billion, decreasing by 1.41%. The volume-to-market cap ratio stands at 26.28%, suggesting that trading activity remains relatively high compared to Litecoin’s market value.
Currently, Litecoin’s circulating supply sits at 75.32 million LTC out of a total supply of 84 million, reflecting that the majority of Litecoin has already entered circulation. With only a limited portion left to be mined, the cryptocurrency’s scarcity may continue to drive interest among investors.
Technical indicators: RSI and MACD point to potential reversal
Based on the technical analysis, the RSI and the MACD analysis offer a projection of Litecoin’s price trend. At the moment, the RSI is at 32.31, signaling that Litecoin may enter an oversold region. This suggests that there is a possibility for price reversal or just a correction, and if the RSI crosses the 50 level, then the price will most probably go up.
Meanwhile, the MACD shows a bearish trend, as the MACD line remains below the signal line. This suggests continued downward momentum, though a flattening pattern in the MACD could signal a slowdown in the downtrend.
