Litecoin (LTC) Whales Push Exchange Inflows Amid Price Drop
beincrypto.com 10 July 2024 12:47, UTC Litecoin (LTC) has witnessed a significant uptick in large-holder coin flow to exchanges in the last week.
This is due to the steady fall in the coin’s value and large holders’ desire to prevent further losses. As of this writing, LTC trades at $65.73, falling by almost 15% in the past seven days.
Litecoin Whales Sell Their Holdings
Litecoin’s (LTC) non-stop price decline in the past few weeks has caused some of its large holders to send their coins to cryptocurrency exchanges.
On-chain data show that the coin’s large holder netflow has surged by over 464% in the last seven days.
This metric measures the net amount of tokens that large holders transfer into or out of exchanges. When it surges, more tokens are being transferred from large holders’ wallets to exchanges. This indicates that this cohort of investors is preparing to sell their tokens. This could result in an increase in selling pressure and further price decline.
On the other hand, when the metric declines, it suggests that large holders are withdrawing their tokens from exchanges, possibly to hold them for a longer term. This is sometimes due to market uncertainty or them simply waiting for a better opportunity to enter new positions.
Assessing LTC’s financial statistics explains why its large holders have been selling. Currently, 5.93 addresses, 72% of all LTC holders, are “out of the money.”
An address is considered out of the money if the current market price of an asset is lower than the average cost at which the address purchased the tokens it currently holds.
Conversely, 2.08 million addresses, representing 25% of all LTC holders, hold their coins at a profit.
Read More: Litecoin: A Complete Guide to What it is And How it Works
The steady decline in LTC’s price will lead to an uptick in the number of investors holding at a loss. Therefore, to prevent investment losses, LTC whales have intensified profit-taking activity.
LTC Price Prediction: The “Nays” Have it
Readings from LTC’s Moving average convergence/divergence (MACD) indicator confirm the bearish bias toward the altcoin. Traders use this indicator to gauge price trends, momentum, and potential buying and selling opportunities in the market.
As of this writing, LTC’s MACD (blue) rests below its signal (orange) and zero lines. When an asset’s MACD is set up this way, it is a bearish sign that suggests that selling activity outweighs buying momentum.
If this trend continues, LTC’s price may drop to $63.98.
However, if market sentiment shifts from bearish to bullish, it may drive the coin’s value up toward $68.60.
