- Excessive hash fee and no community outages had been indicative of a secured community.
- LTC dropped by 3.15% at press time, sparking fears of a robust pullback.
Few different cryptocurrencies have carried out in addition to Litecoin [LTC] in 2022’s bear market. Since hitting the lows of June 2022, each the worth and market cap have greater than doubled in worth at press time, data from CoinMarketCap confirmed.
A big a part of this might be attributed to Litecoin’s repute as an environment friendly and safe community. As per a submit shared on Twitter, LTC claimed it had by no means been down since its launch in 2011, an element which may improve its utility as a cost possibility.
#Litecoin has zero downtime in over 11 years of existence. The longest uninterrupted uptime in #crypto. pic.twitter.com/JYqpyAVd2q
— Litecoin (@litecoin) January 29, 2023
Learn Litecoin’s [LTC] Value Prediction 2023-24
Furthermore, the community’s hash rate hit an ATH just lately. That is typically considered a optimistic signal on the subject of a community’s safety as unscrupulous assaults turn out to be tough to execute on networks with excessive hash fee.
Whales pose a problem
Nevertheless, the holdings of small and huge Litecoin whales narrated a special story. As per knowledge offered by Santiment, the variety of addresses with greater than 1000 LTC cash has been on a falling slope within the final 12 days.
Supply: Santiment
Moreover, after remaining subdued for the final three days, LTC witnessed a pointy soar in whale transaction depend at press time. This meant that giant addresses indulged in profit-taking by liquidating their positions.
This may be defined by MVRV Ratio. The community was overvalued and therefore in revenue. The growing MVRV Lengthy/Quick Distinction incentivized profit-taking by LTC hodlers, which may result in costs going south.
Supply: Santiment
Santiment had in truth issued a warning to buyers that LTC may drop within the coming days attributable to a rise in promoting exercise amongst whales.
What’s subsequent for LTC?
Litecoin holders have locked in positive aspects of over 30% for the reason that graduation of the bullish rally firstly of the yr. The worth broke out of the mid-term vary with a pointy transfer upward on 29 January. Nevertheless, on the time of writing, it fell by 3.15%, giving an early indication of a pullback.
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The Relative Energy Index (RSI) began to descend, which meant diminished shopping for strain. The On Stability Quantity (OBV) adopted an analogous trajectory, validating the concept of whales’ profit-taking highlighted above.
Supply: TradingView LTC/USD
Litecoin’s halving occasion is about six months away which can be its third after 2015 and 2019. Traditionally, LTC costs have soared within the aftermath of the occasion. It stays to be seen how the silver to Bitcoin’s [BTC] gold will carry out, main as much as the halving.
