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Addresses Accumulate Litecoin, But This May Not Be Enough for LTC’s Rise!

  • An analyst stated that the purchase of 3.81 million LTC by 215 million addresses may not be a necessary condition for LTC to rise. Instead, the inability of the coin to maintain support independent of increasing accumulation could lower its value to $50.
  • According to Glassnode’s data, Hodler Net Position Change was determined to be 362,378. This metric shows the monthly position change of a long-term investor of an asset.
  • Interestingly, traders also seemed to share the view that LTC could be priced higher in the near future. According to Santiment, Litecoin’s funding rate was 0.007%.

An on-chain analyst emphasized that addresses accumulating Litecoin may not be sufficient for its rise: What do traders think about LTC?

Do Metrics Indicate a Rise in Litecoin?

Litecoin-LTC

Famous analyst stated that for Litecoin to reach $75 again, the support level needs to remain stable between $63.22 and $65.19. According to the on-chain analyst, these levels were where many addresses accumulated LTC since its decline.

The analyst stated that the purchase of 3.81 million LTC by 215 million addresses may not be a necessary condition for LTC to rise. Instead, the inability of the coin to maintain support independent of increasing accumulation could lower its value to $50.

Since the halving in the first week of August, Litecoin has consolidated or declined at different intervals. This performance has led to speculation about the potential for LTC to repeat the historical post-halving rally.

In the last 30 days, LTC has lost 29.27% of its value. But what kind of perception do Litecoin holders have? One of the metrics that explains this part is Hodler Net Position Change.

According to Glassnode’s data, Hodler Net Position Change was determined to be 362,378. This metric shows the monthly position change of a long-term investor of an asset. Negative values of the metric indicate a widespread cash outflow.

On the other hand, a positive Hodler Net Position Change implies that HODLers are accumulating from new positions.

litecoin-hodler-net-position-change-ltc

When the above graph is examined, it can be seen that LTC was converted into significant amounts of cash before the halving. However, large amounts of buying imply that HODLers trust LTC’s price movement and imply that a new peak can be reached in a short period of time.

Traders have a bullish perspective

Interestingly, traders also seemed to share the view that LTC could be priced higher in the near future. According to Santiment, Litecoin’s funding rate was 0.007%. Previously, as of August 24, the funding rate was as low as -0.02.

Funding rates are payments made between traders with short and long positions. When the funding rate is positive, traders have a bullish perspective on price movement. In this case, long positions pay shorts to keep their perpetual contracts open.

On the contrary, a negative funding rate implies bearish sentiment, such as paying longs to keep short positions open. In addition, LTC’s daily trading volume on exchanges decreased to 218.55 million.

litecoin-funding-rate

This decrease indicates that wallets holding LTC on exchanges are not interested in selling their assets. If exchange volume continues to decrease, then it is unlikely that Litecoin’s price will fall below $60.

However, high interest on exchanges can change the direction of LTC and alter the course of the coin as bears desire.

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Lucien Renard
Lucien Renardhttps://en.coinotag.com/
Lucien Renard is a 24-year-old writer specializing in cryptocurrency analysis and price action. With a focus on technical analysis, Lucien provides valuable insights into market trends and potential opportunities for investors.
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