LTC Long-Term Holders Sold Before the Halving
Data shows that long-term holders of Litecoin exited the asset before the halving, leaving short-term holders to panic. The halving event involves permanently cutting the block rewards of Litecoin in half.
Main Breakdowns:
– Long-term holders (LTHs) are investors who have held their coins for at least six months.
– LTHs are typically resolute investors who do not easily react to market fluctuations.
– When LTHs sell, it can signal trouble for the market.
– The “holding time of transacted coins” metric can gauge if LTHs are selling.
– A high value indicates LTHs are active, while a low value suggests short-term holders are selling.
Chart Analysis:
– The Litecoin holding time of transacted coins spiked in June during a price rally.
– The rally occurred as the market hyped the upcoming halving event.
– However, the event did not prove bullish for LTC, and the cryptocurrency declined.
– LTHs had already predicted this and sold their coins.
Closing Thoughts:
After the halving, the holding time of transacted coins indicator remained low, indicating that only short-term holders were panic selling. The price of Litecoin currently stands at around $84, down 8% in the last week.
Hot Take:
Long-term holders of Litecoin were well-prepared for the halving event and sold their coins before the price decline. Short-term holders, on the other hand, panicked and sold after realizing a bullish trend would not return. This highlights the importance of monitoring the actions of long-term holders in the cryptocurrency market.
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