Litecoin (LTC) falls, but holders accumulate
Today, LTC has more than 100 days locked up in a big side, losing more and more interest and hierarchy in the ecosystem. However, even Litecoin’s holders continue to maintain their long term vision.
After the sharp drop in the crypto market in March this year, LTC was quite touched. And although it has been recovering, the upward momentum has not been enough.
Litecoin’s daily volume has been falling steadily, reaching lows not seen since March 2019, making clear the decline in interest in Litecoin’s trading. This led to Chainlink today snatching the 9th place in the crypt ecosystem.
The average rate is currently at USD 0.011, which is the lowest level since October 2015.
This situation generates a negative cycle, where miners are less interested in working in the chain, leading to abandonment by investors who see the hash rate being affected.
Is Litecoin worth investing in for the long term?
Litecoin’s Holders are still on top of the ship
There is a lot of negative news currently surrounding LTC. Such as the news of Charlie Lee admitting the low development of the chain, and the fall in the hash rate after the Halving event.
However, it seems that Litecoin’s holders are keeping their eyes on the long term.
Litecoin’s holder wave chart, or UTXO age chart, indicates that more than 63% of the total in circulation has remained intact over the last 12 months, the highest level ever.
It is difficult to try to decipher the reason for this situation, but it is undoubtedly a positive factor over the rest of the coins in circulation.
For the time being, the odds are still stacked in favour of an early resumption of the strong upward trend in the overall crypto market. This could be the factor expected by those who continue to accumulate Litecoin, confident that it would benefit from the new rally thanks to its hierarchy in the ecosystem.
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LTC Technical Analysis: Long-term trend
The historical trend of LTC continues to be upward, so the big drop we have seen over the past 3 years may be nothing more than a sharp reversal.
A bearish trend line is locking the price in a large triangle. A break in the support of this figure would be a terrible sign. However, since the trend is upward, the odds are in favor of a breakout of the downward line.
Medium term trend
From the weekly chart we can see the EMA of 8 and the SMA of 18 crossing back down again, so we can quickly identify the medium term trend.
At the moment the USD 40 support is being a major obstacle for the downtrend. Crossing it would trigger strong sales to at least the USD 30 level.
An upward transition from this direction is to wait for a breakout of the USD 50 resistance.
Short term trend
The daily chart shows the great consolidation that the Cryptosoft price is going through, which does not allow a clear view of the time trend, any of the extremes could be broken.
Nevertheless, in the very short term, the probabilities are in favor of the search for support in USD 40, and that in confluence with the trend to