Liquidation Quandary: Litecoin Wallets Draining Fast – What’s Next For LTC Prices?
08 Dicembre 2023 - 12:00PM
NEWSBTC
Litecoin (LTC) suffered a major fall after a week of consistent
growth, posing possible difficulties going forward. According to
recent data, a significant proportion of wallets have sold their
Bitcoin holdings. As of this writing, LTC is trading at $74.60,
down 1.1% from its peak price over the previous day. This decline
has also had an effect on LTC’s market capitalization. With
Litecoin’s market value falling by 55% compared to Bitcoin in just
five months, the price chart for LTC presents a bleak image. This
sharp decline in value is indicative of investors’ diminishing
trust as they choose to sell off more and more of their holdings.
Related Reading: This BRC-20 Token Just Breached $1 Billion Market
Cap With 180% Rally Today – Details Litecoin Downturn: Small
Investors Flee, Raising Long-Term Viability Concerns Santiment
claims that 199,000 wallets that contained Litecoin around 10 days
ago are no longer in possession of the cryptocurrency. This pattern
could explain why, in comparison to other prominent
cryptocurrencies previously discussed, the coin has performed
comparatively poorly over the last week and year. ⚡️ Approximately
199K wallets that held $LTC 10 days ago, no longer hold any coins.
This is the biggest drop in wallets since October 2022. $LTC‘s
market value vs. $BTC has dropped -55% in 5 months, but #FUD &
small wallets dropping could turn this around.
https://t.co/tIAj6ULd95 pic.twitter.com/SuhqULLfFm — Santiment
(@santimentfeed) December 7, 2023 Interestingly, small-scale
holders account for the majority of the wallets that collapse,
which contrasts with the tenacity exhibited by Sharks and Whales in
the cryptocurrency space, according to Santiment. It seems that
small investors—who are frequently the most susceptible to market
swings—are the main group selling their holdings, presumably
because they are worried about the investments’ long-term
sustainability and liquidity. The significant departure of almost
199,000 wallets that previously contained LTC is a noteworthy
phenomena that should not be disregarded. The significant decline
in selling activity reflects a more widespread feeling of
apprehension, uncertainty, and skepticism that has negatively
impacted the asset. LTC market cap currently at $5.499 billion on
the daily chart: TradingView.com Up to 2.13% of all Litecoin
wallets have sold off their LTC since late November, according
to the most recent data. On the Litecoin network, at least 9.11
million addresses now hold zero coins. As some of the top
cryptocurrencies have experienced incredible price
increases—gaining over 100% in the year thus far—Litecoin has
remained relatively stable, showing a growth of less than 4% year
to date. For about two weeks, the price of LTC has been
consistently fluctuating between $70 and $75. In the second half of
the month, there was a narrow trading range between $68 and $72.
LTC’s Resilience: Navigating Liquidation In Leveraged Trading In
order to forcefully end a trader’s leveraged position once a trader
loses all or a portion of their initial margin, the exchange uses a
process known as liquidation. It occurs when a trader doesn’t have
enough money to maintain an open position in a leveraged position,
or can’t meet the margin requirements for the position. Source:
Bitpay LTC maintained a high trading volume even as its price went
sideways. Additionally, its MVRV ratio was higher, which is often
an indication of good health. However, even with a decline, its
Relative Strength Index (RSI) stayed over the neutral threshold of
50. By doing this, the coin may be able to satisfy investors and
continue its bull run. Related Reading: XRP Greed Index Soars,
Backed By Robust $1.3 Billion Volume – Good For Price? Meanwhile,
the biggest crypto payment processor in the world, BitPay, now
accepts LTC as its preferred coin. Beyond Bitcoin [BTC] and
Ethereum [ETH], it has demonstrated its supremacy in practical
applications, accounting for 34% of BitPay’s payment count in
cryptocurrency. (This site’s content should not be construed as
investment advice. Investing involves risk. When you invest, your
capital is subject to risk). Featured image from Shutterstock
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