- Excessive hash fee 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 value and market cap have greater than doubled in worth at press time, data from CoinMarketCap confirmed.
A big a part of this may very well 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 may enhance 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 usually thought to be a constructive signal on the subject of a community’s safety as unscrupulous assaults change into troublesome to execute on networks with excessive hash fee.
Whales pose a problem
Nevertheless, the holdings of small and huge Litecoin whales narrated a distinct story. As per knowledge 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 soar in whale transaction depend at press time. This meant that giant addresses indulged in profit-taking by liquidating their positions.
This is also defined by MVRV Ratio. The community was overvalued and therefore in revenue. The rising MVRV Lengthy/Brief Distinction incentivized profit-taking by LTC hodlers, which may result in costs going south.
Santiment had in reality issued a warning to buyers that LTC may 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 beneficial properties of over 30% because the graduation of the bullish rally initially of the 12 months. 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 lowered shopping for strain. The On Steadiness Quantity (OBV) adopted an identical trajectory, validating the thought of whales’ profit-taking highlighted above.
Litecoin’s halving occasion is about six months away which will likely 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.