Litecoin (LTC) recently mirrored Bitcoin’s surge, breaking above $100 for the first time in nearly ten months. However, the celebration was short-lived as a correction dragged LTC back down to $95. Can Litecoin recapture the coveted $100 mark, or is this a sign of further decline?
Frustration Mounts for Long-Term Investors
The price swings have left roughly 351,000 LTC investors feeling the sting. These long-term holders, who bought in when the price hovered between $94 and $101, are now underwater on their investments. With nearly $400 million worth of LTC (3.96 million tokens) caught in this price limbo, these investors face a crucial decision: hold tight for potential profits or sell to break even. The hope of a renewed bull run may incentivize them to wait, potentially creating a buying wall against further drops.
Long-Term Holders Show Conviction: This wait-and-see approach isn’t unique to this specific investor group. Data suggests a majority of the LTC supply rests with long-term holders, often referred to as “Hodlers.” However, the most concerning group for immediate price action are short-term traders.
Also Read: Litecoin (LTC) Price to Blast Off in 2024: Why Experts Predict $238 by 2025
Shifting Tides: From Traders to “Cruisers”
The recent transfer of LTC supply from short-term traders to “Cruisers” (mid-term holders) is a positive development. Unlike short-term traders who frequently buy and sell, “Cruisers” typically hold for a period between one month and a year. This shift indicates a growing conviction among investors, willing to hold their LTC for a potential price increase. The movement of nearly 2 million LTC ($190 million) to “Cruiser” wallets in the past three days reinforces this belief.
Can $100 Become Support?
If these trends hold, particularly continued buying pressure from long-term holders and “Cruisers,” the LTC price could rebound from its current slump. A successful retest and potential breach of $104 would turn the previously underwater $400 million supply profitable, potentially creating a stronger support floor.
However, failing to break above $100 or profit-taking by these investors could trigger another price drop. A decline below $96 would signal renewed bearish momentum, potentially invalidating the optimistic outlook.
The future of Litecoin hinges on a delicate balance. Long-term holder conviction and the actions of “Cruisers” will be crucial factors in determining whether LTC can reclaim the $100 mark and establish it as a support level.
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