- Litecoin sees signs of slowing down after making it to the top performers list last week
- A preview of what investors should expect in the future
Last week we saw Litecoin rally as most of the major failing coins struggled to rebound. As a result, Litecoin was getting a lot of attention, helped by a favorable mention from Michael Saylor during an interview. But can it sustain its rise now that the market is showing signs of a slight recovery?
Reading Litecoins [LTC] price prediction 2023-2024
Litecoin Magazine took note of Saylor’s recent statements in which he described LTC as a store of value. Saylor has been one of the leading authorities on the crypto segment, hence his statement which carries a lot of weight.
it is not the first time @saylor has mentioned Litecoin in interviews. There are two more outside of the recent Twitter space. Good to see he’s not biased and understands sound money. https://t.co/sD0dktSh6d
— Litecoin Magazine ŁⓂ️🕸 (@LitecoinMag) November 19, 2022
Saylor’s brief mention and categorization of Litecoin alongside Bitcoin was not taken lightly. Within hours of his statement, the cryptocurrency saw an increase in its social dominance metric. Fast forward to now and Litecoin was among the trendiest cryptocurrencies.
The renewed interest in Litecoin has had a favorable outcome in LTC’s price action. However, LTC’s momentum has slowed considerably over the past 24 hours, indicating that the bulls may be running out of steam.
Why Litecoin Demand Could Slow
A look at the distribution of Litecoin supply revealed the reason why LTC overcame the general direction of the market. Addresses in the 10,000 to 100,000 category and those holding more than 1 million coins have been accumulating since the first week of November. This explains why LTC continued to rally last week.
However, the purchase activity of these addresses has seen a noticeable slowdown in their accumulation. Meanwhile, addresses with between 100,000 and 1 million coins sold out, contributing to some selling pressure. These best addresses have stabilized their sales activities over the past two days.
The slowdown in LTC’s rise was accompanied by a change in sentiment. Its weighted sentiment metric has dropped significantly over the past two days. This indicates that investors might be expecting a decline.
This observation also confirmed why demand had notably fallen over the past two days. Litecoin’s average 90-day coin age has seen a slight increase over the past three days. It was a sign that investors held their coins during the rally.
Furthermore, its Market Value to Realized Value (MVRV) ratio has also reached a significant rise in the past three days. This indicated that traders who had been buying on recent lows in November were in profitable areas at the time of writing.
Why was it important? Well, short-term traders who bought the recent dip might be looking to take some profit. If so, we should expect to see a resurgence in selling pressure.
On the other hand, a return to bullish demand can help cultivate and sustain bullish sentiment among Litecoin investors.