Litecoin’s short term prospects look dull, here’s why
- Litecoin long-term holders were still optimistic despite the bearish short-term outcome.
- Whales contributed to the recent sell pressure but retail traders are taking advantage.
How many are 1,10,100 LTCs worth today
Litecoin’s on-chain volume cooled down since 2 August, indicating a slowdown in trading activity. This was perhaps in response to the fact that the price failed to rally before the halving as was anticipated.
Nevertheless, its mean coin age extended its upside and was now at its highest level in the last 4 weeks.
The rallying mean coin age does indicate that most long-term holders are still holding on to their LTC. While this confirms that the long-term market sentiment remains bullish, it has certainly not been the case for the short-term outlook.
In fact, the weighted sentiment metric recently experienced a shakedown after previously registering a steady uptick.
The weighted sentiment metric’s slight downside in the last 7 days reflects the wave of sell pressure experienced during the same period.
LTC experienced capitulation which saw its price fall by as much as 15% to its recent lows. It bounced back slightly since then and exchanged hands at $82.88 at the time of writing.
The sell pressure that prevailed in the last 7 days was strong enough to push LTC below its 50 and 200-day moving averages. This underscores the bearish strength, but despite that, the cryptocurrency still managed to avoid being oversold.
Is a short-term bullish relief on the cards?
LTC traders should note that the price is now sitting at a short-term support level. Failure to pivot near this range could see the price push down further towards its June lows. Perhaps supply distribution may offer insights into the next move for Litcoin.
According to Litecoin’s supply distribution metric, whales holding over 1 million LTC trimmed their balances considerably from 2 August. Addresses holding between 100,000 and 1 million followed suit on 3 August. Since these were the largest whales (by percentage holdings), their actions have a noteworthy impact on prices.
Some LTC traders and enthusiasts see the cryptocurrency’s latest dip as an opportunity to get in at lower prices. The supply distribution metric reveals that some categories have been buying the dip.
Meanwhile, outflows from whale addresses have leveled out, thus explaining the sideways price action. However, these findings do not guarantee a pivot at current prices.
Read about Litecoin’s price prediction for 2023/2024
In the meantime, PayPal is expanding to support cryptocurrencies. It recently added support for a new stablecoin and Litecoin happens to be one of 4 cryptocurrencies supported by the PayPal ecosystem.
.@Paypal is adding its own new stable token $PYUSD to the app and yes customers can convert it to other cryptocurrencies supported by the #PayPal ecosystem. There's only 4, one of which is Litecoin ⚡ $LTC pic.twitter.com/IxLFOAOCaY
— Litecoin (@litecoin) August 7, 2023