- The increasing accumulation could confirm the northward movement of LTC.
- Most holders refrained from selling, indicating a possible rise above $180.
Throughout most of April, things changed for much of the crypto market and Litecoin [LTC] was not exempted. However, it’s not about price performance. Instead, the notable rotation occurred with the Hodler Net Position Change.
If this measure is negative, it means that investors are cashing out. But a positive reading indicates accumulation. According to AMBCrypto’s analysis of Glassnode data, the Hodler Net Position Change was positive. indicating that long-term holders purchased 57,095 coins on April 27.
No more cash
From the second week of February to all of March, this measure was negative. This led to speculation that LTC may fall outside the class of altcoins expected to blow minds in the coming months.
Source: Glassnode
However, that may no longer be the case as the net position change has been consistent since April 5. Should we see more accumulation than payout, Litecoin could defy bearish expectations and tilt toward the bullish end.
At the time of writing, Litecoin was changing hands at $18.37, marking a decline of 18.42% over the past seven days. While AMBCrypto discussed a possible increase to $110 in the near term, LTC could rise higher than that in the coming months.
The bulls prepare
To put it in context, we analyzed some other metrics that could impact the coin in the long run. First, we looked at the dormant circulatory system.
This on-chain metric tracks the number of unique coins that have been inactive for a long time but have been traded within a day. Usually, peaks in dormant circulation cause prices to fall.
However, the 365-day dormant circulation on the Litecoin network was the lowest since April 9. With this figure, one can assume that most long-term holders would prefer to keep their coins than sell them cheaply.
Additionally, the Mean Dollar Invested Age (MDIA) fell to a low of 348. The MDIA is the average age of all coins as measured by their purchase price.
Source: Santiment
If the average age of investments in Litecoin had increased, it would have implied that the coin is close to a local top. But since it fell, it indicated that a bull run could be around the corner.
The expected bull run is no guarantee that LTC will rise to the $400 region. But it cannot be ignored that the coin changes hands between $180 and $250.
Read Litecoins [LTC] Price forecast 2024-2025
Still, it’s important to note that the potential increase may appear linear. If LTC makes a jump, it may undergo a correction at another point.
As such, a drop below $84 may be possible before the coin attempts to double or triple its value.