- Litecoin’s price was up by more than 6% in the last seven days.
- Sell pressure on LTC was high, and market indicators were bearish.
After a comfortable week-long rally, Litecoin [LTC] recently witnessed a major setback, which can cause trouble over the coming days.
The latest data revealed that a substantial number of wallets liquidated their LTC holdings. Will this cause a rise in sell pressure and push the coin’s price down?
Litecoin’s liquidation is on the rise
Litecoin’s last week remained in investors’ favor as its price rallied.
According to CoinMarketCap, LTC was up by more than 6% in the last seven days. At the time of writing, it was trading at $73.98 with a market capitalization of over $5.7 billion, making it the 17th largest crypto.
However, things turned sore for LTC as it fell victim to a massive sell-off.
⚡️ Approximately 199K wallets that held $LTC 10 days ago, no longer hold any coins. This is the biggest drop in wallets since October 2022. $LTC‘s market value vs. $BTC has dropped -55% in 5 months, but #FUD & small wallets dropping could turn this around. https://t.co/tIAj6ULd95 pic.twitter.com/SuhqULLfFm
— Santiment (@santimentfeed) December 7, 2023
As per a recent tweet posted by Santiment, approximately 199 thousand wallets that held LTC 10 days ago no longer hold any coins. This was the biggest LTC sell-off since October 2022.
Such major dumps are generally followed by price declines, as it indicates a decline in demand, which can be disastrous for the coin.
Therefore, AMBCrypto checked Litecoin’s liquidation chart to better understand what was going on.
As per our analysis, LTC’s liquidation remained pretty high over the last week, as evident from the sheer number of fluorescent lines on LTC’s liquidation heatmap chart.
It was interesting to note that while that happened, LTC’s price moved sideways.
Source: Hyblock Capital
As its price moved sideways, LTC’s trading volume remained high. Its MVRV ratio was also up, which by and large is a positive signal.
Nonetheless, its 1-week price volatility dropped over the last few days. Additionally, the fact that investors were selling LTC was also proven by its total amount of holders graph, which registered a decline.
Source: Santiment
What to expect from Litecoin?
AMBCrypto’s analysis of LTC’s daily chart pointed out quite a few bearish indicators. For example, LTC’s price touched the upper limit of the Bollinger Bands.
Read Litecoin’s [LTC] Price Prediction 2023-24
Its Chaikin Money Flow (CMF) also registered a downtick, further increasing the chances of a price downtrend over the days to follow.
Nonetheless, its Relative Strength Index (RSI), despite a downtick, continued to remain above the neutral mark of 50. This can help the coin maintain its bull rally and meet investors’ expectations.
Source: TradingView
