- LTC traders are optimistic about a price breakout as on-chain data shows record inflows by long-term holders.
- Investors are closely watching the $ 60-$70 price range with both playing key psychological roles in investors’ and traders’ minds.
Since Litecoin halving, Litecoin’s native token LTC has hugely underperformed. This is unsurprising as the digital asset was flooded with speculators looking to cash in on the short-term profits driven by the halving. But recent data shows that long-term holders are still holding out for long-term gains. In addition, with the exit of short-term traders, the long-term holders are stacking up on coins.
On-chain data shows that since the start of October, long-term holders have been accumulating significantly higher amounts than usual. Between October 13 and October 17, these holders added at least 400,000 LTC to their cumulative balances. Furthermore, 413,949 LTC was added on October 15. Historic records show that this is the highest since June 2021.
This accumulation from long-term holders comes as no surprise seeing that LTC has lost nearly 46 percent of its value since its halving. At the time of press, LTC is trading at $64 after a nearly 4 percent increase in the last 24 hours. At current prices, long-term holders are getting a discount of a lifetime.
Related: Litecoin’s Battle: Bulls vs. Bears in a Sideways Struggle
Historically, the last 3 times the long-term holders’ inflows surpassed 400,000 LTC, its prices rallied at least 30 percent within the next 20 days. The last time this scenario played out was October 2020, June 2021, and February 2022, respectively. Investors will hope for the same pattern to follow, allowing them to make some quick profits.
If this is the case, LTC will look to reach the $76 high and possibly push further to the $100 high depending on the performance of its bigger brother Bitcoin (BTC). BTC is tipped to be bullish in the coming months influenced by the upcoming halving and the possibility of a Bitcoin spot ETF approval.
For retail traders, there is still some resistance. The Aggregregate Order Books chart from 18 crypto exchanges shows traders have placed orders to sell 2.2 million LTC coins. This surpasses the current market demand with only 1.6 million LTC purchase orders active.
In addition to accumulation hitting a record high, the network is enjoying record hashrate which is a key metric for assessing the strength of a blockchain network, especially its security.
Litecoin's Hashrate is close to hitting the 1 PH/s mark!! pic.twitter.com/a6ShJUbApe
— Litecoin (@litecoin) October 19, 2023
Earlier this month, the network also celebrated its 12th birthday, a critical milestone in that the network has been up and running throughout the 12 years. After the recent halving, the LTC reward for Litecoin miners was cut in half, from 12.5 LTC to 6.25 LTC. In the long term, this is key for the project and the altcoin since it helps control inflation by creating scarcity, and decreases the rate at which new LTC enters the market.
