- Litecoin showcased an impressive 40% price rise last week.
- Selling pressure was rising, which can halt LTC’s bull rally.
As a seasoned researcher with years of experience navigating the crypto market, I must admit that Litecoin’s [LTC] recent 40% price surge has been nothing short of astonishing. However, my past encounters with similar scenarios have taught me to tread carefully when the majority of investors are in profit.
Litecoin [LTC] has been on a gaining spree as it registered double-digit growth. This recent price pump pushed nearly 80% of LTC investors into profit. Will this trigger a profit-taking episode, which can put an end to the coin’s bull rally?
Litecoin astonishes investors
Over the past week, Litecoin experienced a significant increase of about 40%. This upward momentum persisted over the past day, with the coin’s value increasing almost 5%. Currently, Litecoin is being traded at approximately $128.8.
As a researcher, I previously noted a potential factor contributing significantly to this bullish trend. The trajectory of Litecoin (LTC) could mirror that of Ripple (XRP), potentially leading to a substantial price rise. Notably, this upward movement might occur independently of a broader altseason.
Currently, a recent tweet from IntoTheBlock shows that about 80% of Litecoin (LTC) investors are enjoying profits, thanks to the coin’s positive trend. Interestingly, this is the highest percentage since 2021, indicating strong investor confidence and the coin’s robust performance.
While this situation appears promising, it might also bring obstacles for LTC in the near future. Typically, when most investors are making profits, they tend to cash out and leave their investments. This excessive selling can create a surge of supply, which ultimately halts or slows down a bull market trend.
Is LTC in trouble?
According to AMBCrypto’s examination, more Litecoin was flowing into wallets than being withdrawn as of December 1st, with a total outflow amounting to 164,270 LTC.
On the very same day, there was an influx of 258,340 LTC into the coin’s pool, marking a significant disparity. This substantial increase suggested that investors were cashing out their investments to realize their gains.
According to Glassnode’s data, there’s been a consistent trend reflected in Litecoin as well. The net position change among its holders has been consistently negative during the past few weeks, which indicates that investors have been offloading their coins.
It appears that the concerning development might persist longer. At the moment, Litecoin’s Fear & Greed Index stood at 86%, suggesting the market is currently experiencing “intense optimism” or “extreme greed.
When the metric hits that point, it sets off a sell alert, potentially encouraging more traders to unload their holdings. Additionally, Litecoin’s On Balance Volume (OBV) has shown a decrease as well.
Read Litecoin’s [LTC] Price Prediction 2024–2025
A decline in the indicator suggests a potential reduction in the asset’s demand. These fluctuations could signal an upcoming adjustment in pricing. Should this occur, Litecoin (LTC) may revisit its nearest support level at around $119 yet again.
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2024-12-03 20:07