Long-term Investors are Buying Unusually Large Amounts of Litecoin
Litecoin (LTC) prices have been stagnant in a narrow range for the past month. However, a crucial on-chain indicator suggests that LTC may be on the verge of a recovery breakout. The HODLer’s Net-Inflow metric shows that long-term investors started buying unusually large amounts of LTC around October 5. In fact, they added at least 400,000 LTC to their cumulative balances in just five consecutive days between October 13 and October 17. This is the highest amount added since June 2021. Historically, when long-term holders’ net inflows surpassed 400,000 LTC, prices increased by at least 25% within the next 30 days.
Short-Term Traders Still Appear Unconvinced of the Recovery Mission
While long-term investors are buying the dip and positioning themselves for the next LTC price rally, short-term traders remain unconvinced. Aggregate data from prominent crypto exchanges shows that sellers are still dominant, with sell orders for 2.2 million LTC compared to only 1.6 million LTC purchase orders. This indicates that day traders are skeptical of a price recovery in the short term.
LTC Price Prediction: $76 is the Historical Price Target
From an on-chain perspective, Litecoin’s price looks set to rebound by at least 25% and reclaim $75. Historical data shows that whenever HODLer’s daily netflows crossed 400,000 LTC, prices reached this level. However, there is a major obstacle at $65 where a large sell-wall exists. If long-term holders continue buying and break through this resistance level, it could propel LTC’s price recovery towards $75 for the first time since August.
Hot Take: Long-Term Investors Poised to Drive Litecoin’s Recovery
While short-term traders remain skeptical, long-term investors are showing confidence in Litecoin by buying unusually large amounts of LTC. This suggests a growing accumulation trend and reduced availability of coins for trading on exchanges. If history repeats itself, with long-term holders driving the market, LTC could experience a significant recovery in the coming weeks. However, it remains to be seen if the bears can push for a price reversal below $50 or if the bulls can maintain support at $52. Overall, the actions of long-term investors will likely play a crucial role in determining Litecoin’s future price movement.
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