This is a sign of strong conviction in the altcoin's long-term value. Worth pointing out, however, that recent metrics indicate that these holders may not yet be reaping any significant gains. By:
Litecoin [LTC] is known for having a loyal investor base, but their short-term profitability might tell a contrasting story.
According to data from IntoTheBlock, an impressive 77.7% of all LTC investors are long-term holders (LTH), making it the highest percentage among top assets like Bitcoin [BTC], Ethereum [ETH], and Shiba Inu [SHIB]. This is a testament to the strong belief in the altcoin's long-term value proposition. However, recent metrics suggest that these holders might not be enjoying significant gains yet.
Among major coins, Litecoin takes the lead with 77.7% of its investors holding for more than a year. Close contenders include Chainlink [LINK] and Shiba Inu, both at 77.5%.
This statistic highlights two interesting implications. Firstly, it showcases the strength of Litecoin's fundamentals in sustaining investor loyalty.
Secondly, with a majority of the supply remaining untouched for over 12 months, it contributes to low active turnover. This can suppress short-term demand pressure and may explain the lack of significant bullish momentum.
Considering this data point further with the Market Value to Realized Value (MVRV) ratio provides deeper insights.
At the time of writing, the 60-day MVRV for Litecoin stood at -12.7%, indicating that most traders who bought LTC in the last two months are, on average, still in the red.
While negative MVRV values can signal undervaluation, they might also point to broader market hesitance to buy into ongoing weakness.
On the price charts, Litecoin was trading at $90.98, attempting to recover lost ground from the last few weeks.
Despite its latest price uptick, it was still lagging behind its 50-day ($102.24) and 200-day ($110.95) moving averages.
The Relative Strength Index (RSI) was at 43.46, reflecting weakened momentum with no immediate signs of bullish divergence. LTC may remain trapped in a consolidation phase without a decisive break above the $102-resistance.
In conclusion, while the high LTH percentage showcases the commitment of Litecoin investors, the lack of profitability and muted price action might indicate caution.
If accumulation continues despite the crypto remaining below key moving averages, it could see extended periods of consolidation unless a catalyst sparks demand or broader market sentiment shifts. The next few weeks will be interesting to watch.
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