Litecoin: A rise in sell pressure could still reap these LTC holders some profits – Crypto News – Crypto News
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Litecoin: A rise in sell pressure could still reap these LTC holders some profits Litecoin: A rise in sell pressure could still reap these LTC holders some profits

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Litecoin: A rise in sell pressure could still reap these LTC holders some profits – Crypto News

Published

3 years ago

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  • Litecoin’s short-term sellers could benefit from LTC’s ongoing price action
  • Litecoin ranked #1 as the largest cryptocurrency by median holding

Crypto investors that bought Litecoin [LTC] after the FTX crash were reaping the benefits following its bullish performance. LTC turned out to be the best cryptocurrency to hold in the medium term. However, Litecoin’s current outlook suggested that it might be about to give up some of its recent gains.

read Litecoin’s [LTC] price predictions 2023-2024

In its latest upgrade, the Litecoin Foundation noted that LTC took the number 1 spot as the largest cryptocurrency by median hold. This means that Litecoin holders had lower losses than other coins in the medium term and this was largely because of its upside.

Litecoin delivered an overall positive performance after finding favor with investors. It rallied by as much as 72% from its monthly low to its current monthly high. A look at its latest price action revealed an interesting observation that might indicate a potentially sizeable bearish retracement ahead.

A comparison between Litcoin’s price and Relative Strength Index (RSI) revealed a price-RSI divergence. LTC’s price managed to achieve a new monthly high last week compared to the previous high in the first week of November. Interestingly, Litecoin’s RSI achieved a lower high last week as compared to the previous high.

Source: TradingView

This pattern can be considered bearish because it underscores the lower relative strength for the underlying asset. In this case, Litecoin price action might be about to experience a surge in sell pressure. Especially if the overall market conditions fail to improve in favor of the bulls.

Is Litecoin selling pressure building up?

A look at some Litecoin metrics already indicated that some notable changes were occurring. For example, its velocity slowed down between 27 and 29 November. At the same time, the Age Consumed metric registered more activity, indicating that coins that have been held for some time were exchanging hands.

Litecoin velocity and age consumed

Source: Santiment

The above metrics confirmed that there was a notable increase in selling pressure observed between 27 and 29 November. A look at address flows revealed an increase in both the sending and receiving addresses during the last 48 hours. This was confirmation of increased activity but the number of receiving addresses were slightly higher than sending addresses.

Litecoin exchange flows

Source: Glassnode

The higher receiving addresses confirmed that there was still some demand at LTC’s current level. However, this may not provide a comprehensive view of where demand is headed. A look at Litecoin’s supply distribution might be better suited to gauge directional momentum.

The supply distribution metric revealed that most of the large address categories leveled out. In other words, they weren’t contributing to sell or buy pressure. That being said, addresses holding between 1,000 and 10,000 LTC have continued trimming their balances in the last two days.

Litecoin supply distribution

Source: Santiment

This supply distribution metrics observation suggested a higher likelihood of sell pressure dominating Litecoin in the next few days. If these observations turn out to be accurate, then short sellers might have an opportunity ahead.

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