Litecoin holders praising LTC’s growth could be disappointed because…
- 60% of LTC holders stood in profit as of 22 May as per data from IntoTheBlock
- However, LTC’s long/short ratio saw higher short positions than long positions at press time
It’s nothing new under the sun that Litecoin [LTC] saw an influx of users wishing to escape Bitcoin’s [BTC] high transaction and miner fees. However, that’s not all the LTC community had to rejoice about. As per data from IntoTheBlock, LTC witnessed significant growth in 2023.
Litecoin has seen impressive growth this year! With the halving approaching and LTC20 assets picking up, the nearly 12-year-old chain is showing clear growth in a difficult market. Check out #Litecoin on-chain? https://t.co/YeCyRVDlyt pic.twitter.com/NHxarP1gvN
— IntoTheBlock (@intotheblock) May 22, 2023
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Up and up in 2023
As per the tweet, as of 2 May, 60% of LTC holders stood in profit, and 50.55% of the total supply was held by retail investors. Furthermore, transactions on the LTC network witnessed a surge of more than 397% at the time of writing. This was not all as LTC hashrate also saw a 25% surge on a year-to-date basis.
However, a look at LTC’s daily chart did seem a little concerning. LTC was exchanging hands in the red at the time of writing. But, LTC’s Relative Strength Index (RSI) managed to stay above the neutral line at 55.69. This indicated that a small push in the buying trend could push the RSI higher.
Furthermore, the Awesome Oscillator (AO) and Moving Average Convergence Divergence (MACD) flashed bullish signals at the time of writing. The AO flashed green bars above the zero line which could be taken as a bullish indication.
Furthermore, the MACD line (blue) stayed above the signal line (red) at the time of writing, which strengthened the bullish narrative.
LTC holders going strong
At the time of writing, the amount of LTC holders witnessed an increase over the last two months and stood at 8.38 million. However, LTC’s social dominance and weighted sentiment didn’t reflect the LTC’s holder sentiment.
As of 22 May, LTC’s social dominance witnessed a sharp decline and stood at 0.466% which indicated that LTC’s dominance on the social front wasn’t at its best. Furthermore, LTC’s weighted sentiment too declined over the past few days, especially after 16 May. The weighted sentiment stood at -0.83 at the time of writing.
What could also act in favor of the bears was Litecoin’s long/short ratio. At the time of writing, short holders overpowered long holders. Long holders held 48.88% of positions at press time whereas short holders held 52.12% of positions.
Realistic or not, here’s LTC market cap in BTC’s terms
The short-term holder narrative was also reflected in LTC’s 24-hour performance as the altcoin was trading 0.84% lower in the last 24 hours. In light of increased selling pressure from short-term holders LTC could witness a price correction.
However, at press time, LTC’s seven-day performance still flashed green. LTC traded 3.35% higher in the last seven days as per data from CoinMarketCap.