Over the past week, there has been a significant increase in the inflow of coins from large holders to Litecoin (LTC) exchanges.
This is due to the coin’s steady decline in value and the desire of large holders to prevent further losses. At the time of writing, LTC is trading at $65.73, down almost 15% over the past seven days.
Litecoin Whales Sell Their Assets
The continuous decline in the price of Litecoin (LTC) over the past few weeks has forced some of its major holders to send their coins to cryptocurrency exchanges.
On-chain data shows that net flow from large coin holders has grown by over 464% over the past seven days.
This metric measures the net volume of tokens that large holders are moving to and from exchanges. When it spikes, more tokens are being moved from large holders’ wallets to exchanges. This indicates that this cohort of investors is preparing to sell their tokens. This can lead to increased selling pressure and further price declines.
On the other hand, when the indicator declines, it indicates that large holders are pulling their tokens off exchanges, perhaps to hold them for a longer period of time. Sometimes this is due to market uncertainty or simply because they are waiting for a better opportunity to enter new positions.
An assessment of LTC’s financial statistics explains why its large holders are selling. Currently, 5.93 addresses, 72% of all LTC holders, are “out of the money.”
An address is considered out of business if the current market price of the asset is below the average price at which the address purchased the tokens it currently holds.
In contrast, 2.08 million addresses, which is 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
A sustained decline in LTC price will lead to an increase in the number of investors holding losses. Therefore, to prevent investment losses, LTC whales have increased their profit-taking activity.
LTC Price Prediction: The “Opponents” Know
The LTC Moving Average Convergence Divergence (MACD) indicator readings confirm a bearish bias towards the altcoin. Traders use this indicator to assess price trends, momentum, and potential buying and selling opportunities in the market.
At the time of writing, LTC’s MACD (blue) is below its signal (orange) and zero lines. When an asset’s MACD is set up this way, it is a bearish sign, suggesting that selling activity is outweighing buying momentum.
If this trend continues, LTC price may drop to $63.98.
Litecoin Analysis. Source: TradingView
However, if the market sentiment changes from bearish to bullish, this could lead to the coin’s price rising to $68.60.
