thecoinrepublic.com
Litecoin price hopes of pushing above $100 before the end of March were recently dimmed. This is because LTC has retraced after a failed bullish attempt, and has since pulled back to a key price level.
Litecoin price exchanged hands at $86.05 at press time courtesy of an 11% retracement from its weekly high. This pullback also erased almost all of the gains previously achieved since mid-March.
More importantly, Litecoin price retested a key support range ($81-$87) where price has pivoted from on multiple occasions in the last 4 months. This retests suggests that the probability of LTC bouncing back from the same zone is quite high.
However, the latest market performance suggests that market sentiment remains weak. Extended downside is thus still a probability if the bears maintain dominance.
Holder activity reflects Litecoin price
On-chain data reveals spot outflows have been dominant this March but declined considerably over the last 4 weeks. However, spot inflows were almost non-existent, confirming weak bullish activity.
Derivatives volumes were down to $693.77 million, a 17.40% decline in the last 24 hours. Open interest tanked to $455.51 million, a 4.26% cool off during the same period.
The declining volumes do indicate that sell pressure cooled down considerably. However, it also reveals that investors are still fearful of buying back at current prices, perhaps due to the threat of more potential downside.
The gap between longs vs shorts liquidations was quite high with $3.2 million in longs liquidations compared to just under $13,000 in shorts liquidation.
Speaking of gaps, Litecoin address activity revealed that the number of addresses with zero balances has been on the rise. There were 343.17 million addresses with zero balance and 8.27 million addresses with balance as of 27 May. Perhaps an indication of low confidence among most of its holders.
A look at Litecoin profitability and holder stats
According to data collected from IntoTheBlock, the number of holders at a loss recently surged to 43% while those in profit was at 38%. It is worth noting that Litecoin price was still trading at some premium from its November 2024 lows.
LTC holder data also revealed that 78% of holders acquired Litecoin more than 12 months ago. Only 6% purchased coins in the last 4 weeks while 16% acquired in the last 12 months.
Whale activity declined considerably since February. Weak demand from this particular category could explain its struggle recover from recent lows. But, will the latest discount make it more attractive to whales? Large holder flows remained passive, indicating a lack of eagerness to buy back after the latest discount.
A resurgence of whale activity could potentially aid in its recovery. However, Litecoin price action’s lack of a substantial volume surge to indicate potential accumulation once again suggests that whales may wait out negative sentiment.