- The price of Litecoin has risen by more than 6% in the past seven days.
- Selling pressure on LTC was high and market indicators were bearish.
After a comfortable week-long rally, Litecoin [LTC] recently witnessed a major setback, which could cause problems in the coming days.
The latest data shows that a significant number of wallets have liquidated their LTC holdings. Will this cause an increase in selling pressure and lower the price of the coin?
Litecoin liquidation is increasing
Litecoin’s price continued to favor investors over the past week as its price rose.
According to CoinMarketCapthe LTC has risen by more than 6% in the past seven days. At the time of writing, it was trading at $73.98 with a market cap of over $5.7 billion, making it the 17th largest crypto.
However, things turned painful for LTC when it fell victim to a massive sell-off.
⚡️ About 199,000 wallets that could be held $LTC 10 days ago, no more coins in possession. This is the largest decline in portfolios since October 2022. $LTC‘s market value vs. $BTC has fallen by 55% in 5 months, but #FUD And dropping small wallets could change this. https://t.co/tIAj6ULd95 pic.twitter.com/SuhqULLfFm
— Santiment (@santimentfeed) December 7, 2023
According to a recent tweet from Santiment, approximately 199,000 wallets that held LTC 10 days ago no longer contain coins. This was the largest LTC sale since October 2022.
Such large dumps are generally followed by price drops, as this signals a drop in demand, which can be disastrous for the currency.
That’s why AMBCrypto checked Litecoin’s liquidation chart to better understand what was going on.
According to our analysis, LTCLTC liquidation remained quite high over the past week, as evidenced by the huge number of fluorescent lines on LTC’s liquidation heat map chart.
It was interesting to note that as that happened, the price of LTC moved sideways.
Source: Hyblock Capital
While the price moved sideways, LTC trading volume remained high. The MVRV ratio also increased, which is generally a positive signal.
Nevertheless, one-week price volatility declined in recent days. Plus the fact that investors were selling LTC was also proven by the total number of holders graph, which recorded a decline.
Source: Santiment
What can you expect from Litecoin?
AMBCrypto’s analysis of LTC’s daily chart revealed quite a few bearish indicators. For example, LTC‘s price reached the upper limit of the Bollinger Bands.
Read Litecoins [LTC] Price prediction 2023-24
The Chaikin Money Flow (CMF) also registered a downward trend, further increasing the chances of a price decline in the coming days.
Nevertheless, despite a downtrend, the Relative Strength Index (RSI) remained above the neutral mark of 50. This could help the coin maintain its bull rally and meet investor expectations.
Source: TradingView