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Litecoin [LTC]: Do not get Carried Away by these Bullish Signs

Litecoin [LTC] holders are set to end the year on a high note, as the altcoin sees a historical increase in whale accumulation, according to Santiment data.

During the intraday trading session on December 27th, the count of LTC addresses holding over 1000 coins reached a high of 4232 addresses, the highest count since 2020, according to the on-chain analytics platform.

During the FTX debacle in November, these key holders sought safety by selling their LTC holdings, mirroring the general market trend. However, when the market’s fear began to fade at the beginning of December, their count began to rise. The number of LTC addresses holding 1000+ coins increased by 3% between December 1 and press time.

Furthermore, the LTC / BTC price ratio has increased by more than 130% since June 12. LTC was trading at $67.51 as of this writing, putting it on CoinMarketCap’s list of cryptocurrency assets with the most gains in the last seven days.

Following a surge in the metric, LTC clinched a local price bottom of $56.55 on 14 November, according to on-chain analysis of the altcoin’s Age Consumed metric. This was followed by a temporary drop in the value of LTC, after which it rallied by 19%.

Age Consumed is a metric that measures the activity of previously dormant coins on the blockchain. A sudden increase in Age Consumed indicates that a large number of previously idle tokens are now being moved or transferred between addresses, indicating a significant change in long-term holders’ behavior.

However, a daily chart analysis of LTC’s performance revealed that it began a new bear cycle at the beginning of December, putting coin distributors in control of the market.

On December 4, the MACD line intersected with the trend line in a downtrend, signaling the start of the bear cycle. LTC’s value has fallen by 11% since then.

A gradual decline in buying momentum has also occurred, causing key momentum indicators to fall below their respective neutral zones.

At the time of publication, LTC’s Relative Strength Index (RSI) was 45.76. LTC’s On-balance Volume has decreased by 17% since the beginning of the month, to 17.294 million.

With the Chaikin Money Flow (CMF) registering a negative value of -0.08 at press time, the LTC market remained under pressure.

 

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