Litecoin price might be susceptible to a decline as LTC holders move to sell
- Litecoin price is currently observing high volatility, moving between $102 and $77.
- LTC long-term holders moved their supply to potentially sell their supply over the last two days after the 6% crash on May 24.
- The transaction was intended to book profits as the resulting network-wide gains hit a year and a half high.
Litecoin price is facing much higher volatility than most of the cryptocurrencies in the market at the moment. Since the altcoin is not following Bitcoin’s cue to the T, it is noting upticks and declines every now and then. This has led to many investors choosing the option of selling, which is an indication of a potential incoming bearishness.
Litecoin price could note a decline
Litecoin price is currently trading at $87 after barely marking a rise over the last 24 hours. Consolidated within the range of $102 and $77, the fluctuation observed in price has left one of the most important groups of LTC holders with no other option than selling.
LTC/USD 1-day chart
The long-term holders (LTH) are the cohort that has been holding onto their supply for more than a year. They are not only considered the most loyal investors but also act as a crucial bearish or bullish trigger for the price action. Thus selling from them is generally considered bearish for the cryptocurrency.
This is observed on the age consumed metric, on which elevated levels suggest that a considerable amount of dormant tokens are on the move. Short-term spikes are usually suggestive of profit-taking and, historically, in the case of Litecoin, have marked periods of correction.
Thus a similar spike on May 26 shows that long-term holders moved their supply again.
Litecoin age consumed
A confirmation of selling comes from the fact that the network-wide profits on that day hit a year and a half high. Nearly $6.6 billion worth of profits were registered on May 26, the highest since November 2021.
Litecoin network realised profits
The trigger for this selling could have been the 6% crash observed on May 24, which could have left investors uncertain of a recovery. Thus if historical instances prove to be true this time around as well, Litecoin price could note a decline.
Losing the 200-day Exponential Moving Average (EMA) support at $84 could push LTC down toward the critical support level of $77. A daily candlestick close below this level could further result in a correction to March lows of $69.