Litecoin: A look at the state of LTC hodling as its halving draws near
- Litecoin halving still not yielding much excitement with the narrowing countdown.
- LTC yields to sell pressure after recent rally due to short-term profit-taking.
July is almost here, which means Litecoin’s upcoming halving is less than 5 weeks away. Halvings often have a positive impact on the network’s native cryptocurrency. But will that still be the case for LTC?
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The good news is that Litecoin on-chain data reveals that a significant proportion of LTC holders are hodling their coins. This is evident in Litecoin’s mean coin age which just reached a new 3-month high. This confirms that a percentage of recently acquired LTC coins have not been moved during the same period.
Litecoin’s 90-day MVRV ratio recently attempted to bounce off its lower range. This action was aided by the upside it experienced since mid-June. However, LTC’s price action cooled down in the last 5 days, and traded at $85 at the time of writing.
The sell pressure in the last few days does not reflect the surge in the mean coin age. But this was likely because some whales have been taking profit. A look at LTC’s supply distribution reveals that whales holding over 100,000 LTC have been trimming their budget since 23 June.
Whales demonstrate mixed outcomes
The same whale category currently controls 35.05% of LTC’s circulating supply. This means they have the highest impact on price action.
LTC’s supply distribution also reveals that some whale categories have also been accumulating as the price dipped lower. But can LTC push back above the $100 price level in July? Well, the recent sell pressure confirms that there was significant profit-taking. This may water-down the bullish expectations.
The Litecoin development activity metric shows relative inactivity for the last 2 weeks. This outcome does not necessarily inspire confidence and might have an opposite result. Similarly, Litecoin’s weighted sentiment metric also indicates low excitement among investors.
The above metrics may explain why LTC was quick to give up some of its latest gains. While this has been the situation in the short-term, the next few weeks might bring forth more changes. This is because the closer the Litecoin halving, the more likely it will be for investor sentiments to shift.
LTC holders should keep an eye out for such changes within the next few weeks.
The outcome may also depend on the overall sentiment in the crypto market, although Litecoin might overcome its Bitcoin correlation. Bullish expectations ahead of a major development may not necessarily yield the expected outcome.