Litecoin (LTC), Dogecoin (DOGE), and Ripple (XRP) are three cryptocurrencies that have been on the market longer than many altcoins. LTC and XRP were created in 2011, while Dogecoin appeared two years later.
So it’s not surprising to say that these trios are on par in terms of longevity. Despite the small age difference, Litecoin has gained more market trust than other coins. But how?
Litecoin holders remain its backbone
One way to tell whether the broader market has confidence in a cryptocurrency’s potential is to look at the number of its holders. Over the past few days, the number of Litecoin holders has decreased noticeably.
As of this writing, there are over 8 million LTC holders. Meanwhile, for XRP and DOGE, these numbers are increasing. Despite this surge, Litecoin still has more holders than Dogecoin and Ripple, with 6.7 million and 5.26 million, respectively.
A high number of holders indicates confidence in the cryptocurrency, regardless of current price trends. This belief may be based on Litecoin supply. The maximum supply of this coin is 84 million pieces, which is much lower than the other two. However, it also affects the performance of the coin.
Read more: Litecoin and Ethereum: What’s the difference?
Number of holders of Litecoin, XRP, and Dogecoin. Source: Santiment
Litecoin price has not performed better than DOGE or XRP this year, suggesting that Litecoin holders are not focused on short-term profits.
Additionally, the number of addresses holding large amounts of LTC has also increased. According to IntoTheBlock, the number of addresses holding between 1 million and 10 million has increased by 33% within the last month.
Litecoin addresses by holdings. Source: Into the Block
This shows that demand for the coin is increasing and suggests that market participants are taking advantage of the decline and buying at a discount. If this situation continues, the price of LTC may temporarily rise.
Vincent Maliepaard, Marketing Director at IntoTheBlock, spoke to BeInCrypto about Litecoin. According to him, the coin has recently recorded several milestones, especially in terms of volume.
“Litecoin trading volume has been steadily increasing over the past three months and now averages 49 million LTC per day, which is equivalent to 66% of the current market capitalization. (FYI) , which is quite high compared to many other similarly sized coins, such as AVAX’s 2.9% and LINK’s 0.77%),” says Maliepaard.
An increase in volume indicates growing interest in cryptocurrencies. If this holds, it could help LTC prices bounce back from the recent correction.
LTC price prediction: Recovery overcomes further correction
At the time of writing, LTC is trading at $71.91. However, data obtained from Money In/Out Around Prices (IOMAP) suggests that prices could move higher soon.
IOMAP evaluates resistance and support by looking at profit or loss addresses around a certain price range. If a large number of addresses are included in the money, the price can act as support. But if that focus is outside of money, it becomes a resistance zone.
According to IntoTheBlock, 295,350 addresses were profitable and bought LTC for around $70.60. Conversely, 286,450 people who accumulated coins at a weighted price of $72.88 suffered losses. If more holders hold their funds, LTC could have strong support between $69.67 and $71.54.
If this is confirmed, the price could continue its uptrend and break through $72.88 to $74.52 or $77.08.
Read More: How to Buy Litecoin (LTC) in 4 Easy Steps
Money coming and going before and after the price of Litecoin. Source: Into the Block
However, this prediction may become invalid if the number of LTC holders decreases. If this happens, it could signal a vote of no confidence in the cryptocurrency and the price could fall to $68.23/.
Disclaimer
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