The recent amount of inflow boost Litecoin (LTC) is getting is attributed mainly to the activities of Crypto Whales investing in the coin.
The movement of Litecoin (LTC) coins held by large investors to cryptocurrency exchanges has experienced a significant increase in the past week. The decreasing value of LTC causes this increase.
The cryptocurrency has experienced a 15% decline in value over the past seven days. In response to these market conditions, substantial holders are taking measures to reduce the likelihood of additional losses.
Increasing Selling Pressure from LTC Whales
Within the last seven days, there has been a significant increase of over 464% in the netflow of large holders to exchanges, as indicated by on-chain data. This increase implies that substantial quantities of LTC are being transferred from the accounts of large holders to exchanges, which could lead to potential sell-offs and exacerbate the downward pressure on prices.
A more thorough examination of LTC’s financial metrics reveals the reasons for the divestment of its primary holders. Currently, 5.93 million addresses, which account for 72% of all LTC holders, are experiencing financial loss. An address is classified as belonging to this category if the current market value of its tokens is less than the average purchase price.
Technical indicators such as the Moving Average Convergence Divergence (MACD) corroborate the bearish sentiment encircling LTC. The MACD evaluates the trends and momentum of asset prices. The MACD line (blue) in the case of LTC is below both the signal line (orange) and the zero line, suggesting a significant selling momentum.
If this trend persists, the price of LTC may experience an additional decline, potentially approaching support levels at $63.98. Traders and analysts are closely monitoring the activities of the LTC whale to navigate future price action amidst market volatility.
What is Litecoin?
In 2011, Charlie Lee introduced Litecoin (LTC), a peer-to-peer cryptocurrency intended to serve as an adjunct to Bitcoin. Due to its implementation of the Scrypt hashing algorithm, Litecoin is frequently called the “silver to Bitcoin’s gold.” It operates on a decentralized blockchain and provides faster transaction confirmation periods than Bitcoin.
Litecoin has remained a relevant player in the cryptocurrency industry for many years, serving as a testbed for Bitcoin improvements and becoming a widely traded digital asset on various exchanges. It has a market valuation of just over $4 billion, making it the 23rd most significant cryptocurrency by market capitalization.
Coinbase Derivatives has recently introduced margined futures for LTC, making it the first CFTC-regulated exchange to offer such products. This action underscores the expanding relevance of Litecoin in the broader financial landscape and its ongoing development, as evidenced by its increasing adoption in institutional financial markets.
The 12-Year Uninterrupted Uptime of Litecoin
Litecoin (LTC) recently achieved a significant milestone by maintaining uninterrupted service for 12.5 years since its inception in 2011. This accomplishment underscores the dependability and resilience of Litecoin in the cryptocurrency sector, as it continues to operate without interruption in the face of technological advancements and market fluctuations.
In August 2023, the block reward of Litecoin was reduced from 12.5 LTC to 6.25 LTC per block due to a halving event. This deflationary measure aims to maintain the longevity of LTC’s reward system and manage inflation. Litecoin has undergone numerous enhancements over the years, establishing itself as a prominent cryptocurrency with a capped supply of 84 million coins.