- Excessive hash price and no community outages have been indicative of a secured community.
- LTC dropped by 3.15% at press time, sparking fears of a powerful 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 popularity 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 might 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] Worth Prediction 2023-24
Furthermore, the community’s hash rate hit an ATH lately. That is usually thought to be a optimistic signal with reference to a community’s safety as unscrupulous assaults turn out to be tough to execute on networks with excessive hash price.
Whales pose a problem
Nevertheless, the holdings of small and enormous Litecoin whales narrated a unique story. As per information supplied by Santiment, the variety of addresses with greater than 1000 LTC cash has been on a falling slope within the final 12 days.
Moreover, after remaining subdued for the final three days, LTC witnessed a pointy leap in whale transaction rely at press time. This meant that enormous addresses indulged in profit-taking by liquidating their positions.
This may be defined by taking a look at MVRV Ratio. The community was overvalued and therefore in revenue. The growing MVRV Lengthy/Quick Distinction incentivized profit-taking by LTC hodlers, which might result in costs going south.
Santiment had actually issued a warning to traders that LTC might drop within the coming days on account of a rise in promoting exercise amongst whales.
What’s subsequent for LTC?
Litecoin holders have locked in positive factors of over 30% for the reason that graduation of the bullish rally originally of the yr. The value 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 Power Index (RSI) began to descend, which meant diminished shopping for stress. The On Steadiness Quantity (OBV) adopted the same trajectory, validating the concept of whales’ profit-taking highlighted above.
Litecoin’s halving occasion is about six months away which might 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.