• Litecoin price is currently observing high volatility, moving between $102 and $77.
  • LTC long-term holders moved their supply to potentially sell their supply over the last two days after the 6% crash on May 24.
  • The transaction was intended to book profits as the resulting network-wide gains hit a year and a half high.

Litecoin price is facing much higher volatility than most of the cryptocurrencies in the market at the moment. Since the altcoin is not following Bitcoin’s cue to the T, it is noting upticks and declines every now and then. This has led to many investors choosing the option of selling, which is an indication of a potential incoming bearishness.

Litecoin price could note a decline

Litecoin price is currently trading at $87 after barely marking a rise over the last 24 hours. Consolidated within the range of $102 and $77, the fluctuation observed in price has left one of the most important groups of LTC holders with no other option than selling.

LTC/USD 1-day chart

LTC/USD 1-day chart

The long-term holders (LTH) are the cohort that has been holding onto their supply for more than a year. They are not only considered the most loyal investors but also act as a crucial bearish or bullish trigger for the price action. Thus selling from them is generally considered bearish for the cryptocurrency.

This is observed on the age consumed metric, on which elevated levels suggest that a considerable amount of dormant tokens are on the move. Short-term spikes are usually suggestive of profit-taking and, historically, in the case of Litecoin, have marked periods of correction.

Thus a similar spike on May 26 shows that long-term holders moved their supply again.

Litecoin age consumed

Litecoin age consumed

A confirmation of selling comes from the fact that the network-wide profits on that day hit a year and a half high. Nearly $6.6 billion worth of profits were registered on May 26, the highest since November 2021.

Litecoin network realised profits

Litecoin network realised profits

The trigger for this selling could have been the 6% crash observed on May 24, which could have left investors uncertain of a recovery. Thus if historical instances prove to be true this time around as well, Litecoin price could note a decline.

Losing the 200-day Exponential Moving Average (EMA) support at $84 could push LTC down toward the critical support level of $77. A daily candlestick close below this level could further result in a correction to March lows of $69.


Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.

If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.

FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.

The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.

Join Telegram

Recommended content


Recommended Content

Editors’ Picks

Dogwifhat price pumps 5% ahead of possible Coinbase effect

Dogwifhat price pumps 5% ahead of possible Coinbase effect

Dogwifhat (WIF) price recorded an uptick on Thursday, going as far as to outperform its peers in the meme coins space. Second only to Bonk Inu (BONK), WIF token’s show of strength was not just influenced by Bitcoin (BTC) price reclaiming above $63,000.

More Dogwifhat News

Runes likely to have massive support after BRC-20 and Ordinals frenzy

Runes likely to have massive support after BRC-20 and Ordinals frenzy

PUPS, WZRD, and PEPE are gaining liquidity through Bitcoin Ordinals. Creator of Bitcoin’s Ordinals protocol is debuting a new fungible token standard to rival BRC-20, Runes.

More Cryptocurrencies News

Ethereum shows firm support at key level as its correlation with US indices increase

Ethereum shows firm support at key level as its correlation with US indices increase

Ethereum's price continued a sideways movement on Thursday as the market still awaits a trigger. Ethereum isn't alone in this horizontal trend; several major index funds have also traded sideways.

More Ethereum News

Mango Market attacker convicted of fraud and market manipulation

Mango Market attacker convicted of fraud and market manipulation

Mango Market attacker Avi Eisenberg was convicted by a federal jury on Thursday for "fraudulently obtaining" funds from the Solana-based decentralized exchange (DEX). He could face up to 20 years in prison for his role in the $110 million attack.

More Cryptocurrencies News

Bitcoin: BTC’s rangebound movement leaves traders confused

Bitcoin: BTC’s rangebound movement leaves traders confused

Bitcoin (BTC) price has been hovering around the $70,000 psychological level for a few weeks, resulting in a rangebound movement. This development could lead to a massive liquidation on either side before a directional move is established. 

Read full analysis

BTC

ETH

XRP