Litecoin Wallets Are Running Out Fast – What’s Next for LTC Price?
Litecoin (LTC) has suffered a significant decline after a week of consistent growth, and may face trouble ahead. Recent data shows that a significant number of wallets have sold their Bitcoin holdings.
As of this writing, LTC is trading at $74.60, down 1.1% from the previous day’s high. This decline also affected LTC’s market capitalization.
The LTC price chart presents a bleak image as Litecoin’s market value has fallen 55% compared to Bitcoin in just five months. This rapid decline in value signals a decline in investor confidence as they choose to sell more and more of their holdings.
Litecoin Slump: Small Investors Flee, Raising Concerns About Long-Term Viability.
Santiment claims that 199,000 wallets that contained Litecoin about 10 days ago no longer hold the cryptocurrency. This pattern may explain why the coin has performed relatively poorly over the past week and year compared to the other major cryptocurrencies discussed previously.
⚡️ Holds approximately 199,000 wallets $LTC 10 days ago, I no longer hold the coins. This is the largest wallet drop since October 2022. $LTCmarket value vs. $BTC It fell -55% in 5 months, but #FUD & if you run out of a small wallet, things can change. https://t.co/tIAj6ULd95 pic.twitter.com/SuhqULLfFm
— Santiment (@santimentfeed) December 7, 2023
Interestingly, according to Santiment, small holders account for the majority of collapsing wallets, which contrasts with the tenacity shown by sharks and whales in the cryptocurrency space.
Smaller investors, who are most vulnerable to market fluctuations, appear to be the main group selling their holdings. This is probably due to concerns about the long-term sustainability and liquidity of investments.
The significant exodus of nearly 199,000 wallets that previously contained LTC is a notable phenomenon that should not be ignored. The sharp decline in sales activity reflects broader anxiety, uncertainty and skepticism that is negatively impacting assets.
LTC market cap currently at $5.499 billion on the daily chart: TradingView.com
According to the most recent data, up to 2.13% of all Litecoin wallets have sold LTC since the end of November. On the Litecoin network, at least 9.11 million addresses currently hold Zero coins.
While the prices of some of the top cryptocurrencies have experienced incredible price growth, with prices rising more than 100% year to date, Litecoin has remained relatively stable, growing less than 4% year to date.
For about two weeks, the price of LTC has fluctuated continuously between $70 and $75. The second half of the month saw a narrow trading range between $68 and $72.
The Resilience of LTC: Exploring Liquidation in Leveraged Trading
To force a trader’s leveraged position to be closed after the trader has lost all or part of his initial margin, exchanges use a process called liquidation. This occurs when a trader does not have enough funds to maintain an open position in a leveraged position or is unable to meet the margin requirements for the position.
Source: Bitpay
LTC maintained high trading volume even when the price was moving sideways. They also had higher MVRV rates, which often indicates good health.
However, despite the decline, the Relative Strength Index (RSI) remained above the neutral threshold of 50. This will allow the coin to satisfy investors and continue its upward trend.
Meanwhile, BitPay, the world’s largest cryptocurrency payment processor, now accepts LTC as its preferred coin. BitPay has proven its superiority in actual applications, accounting for 34% of the number of cryptocurrency payments, surpassing Bitcoin (BTC) and Ethereum (ETH).
(The content of this site should not be construed as investment advice. Investing involves risk. When you invest, your capital is at risk.)
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