Litecoin (LTC) has seen a significant increase in coin flow from large holders to exchanges over the last week.
This is due to the steady decline in the value of the coin and the desire of large holders to prevent further losses. As of this writing, LTC is trading at $65.73, down almost 15% over the past seven days.
Litecoin whales sell their holdings
Litecoin (LTC) has continued to fall in price over the past few weeks, prompting some large holders to transfer their coins to crypto exchanges.
According to on-chain data, net flows among large holders of the coin have surged more than 464% in the past seven days.
Large Litecoin holder Netflow. Source: Into the Block
This metric measures the net amount of tokens that large holders transfer to and from the exchange. When it spikes, more tokens will be transferred from the wallets of large holders to the exchange. This indicates that this group of investors is preparing to sell their tokens. This could increase selling pressure and cause further price declines.
On the other hand, if this indicator declines, it suggests that large holders are exiting the exchange to hold their tokens for a longer period of time. This may be due to market uncertainty or simply waiting for a better opportunity to enter a new position.
Assessing LTC’s financial statistics helps explain why large holders are selling. Currently, 5.93 addresses, or 72% of all LTC holders, are in a “no money” state.
An address is considered out of the money if the current market price of the asset is lower than the average cost of purchasing the tokens it currently holds.
Conversely, 2.08 million addresses, or 25% of all LTC holders, are holding coins for profit.
Read more: Litecoin: A complete guide to what Litecoin is and how it works
Litecoin’s global money movement. Source: Into the Block
A steady decline in LTC prices will lead to an increase in the number of investors incurring losses. Therefore, to prevent investment losses, LTC whales are increasing profit-taking activities.
LTC price prediction: the “naysayers” have it
LTC’s Moving Average Convergence/Divergence (MACD) indicator readings confirm a bearish bias towards the altcoin. Traders use this indicator to assess price trends, momentum, and potential buying and selling opportunities in the market.
As of this writing, LTC’s MACD (blue) is below the signal (orange) and zero line. When an asset’s MACD is set like this, it is a bearish sign that selling momentum is outweighing buying momentum.
If this trend continues, LTC price could fall to $63.98.
Litecoin analysis. Source: TradingView
However, if the market sentiment shifts from bearish to bullish, the coin’s value could rise towards $68.60.
Disclaimer
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