Litecoin (LTC), one of the leading cryptocurrencies on the market, has experienced a period of stagnation in recent months. However, there are signs that the long-term holders of LTC are returning to action, leading to speculation about a potential recovery phase for the cryptocurrency. In this article, we will examine the market conditions and factors that may influence LTC’s recovery. We will also explore expert forecasts on LTC’s price movement and analyze the potential for a price recovery in Litecoin (LTC).
The Post-Halving Decline and the Turning Point
Litecoin’s major stakeholders have scaled back their trading activity in the past few months as the expected post-halving decline in LTC’s price ran its course. The cryptocurrency underwent its third halving event on August 2, 2023, which resulted in a reduction of miners’ block rewards from 12.5 LTC to 6.25 LTC. As predicted, Litecoin’s price has been on a steep decline since the halving.
However, a crucial on-chain indicator suggests that LTC may have reached a turning point. Glassnode’s analysis of the Litecoin network reveals that long-term investors have started buying unusually large amounts of LTC since October 5. This trend is reflected in the Litecoin HODLer’s Net-Influx metric, which measures the daily growth in the quantity of LTC coins held by investors who have maintained their balances for at least one year.
Long-Term Investors Accumulating Litecoin (LTC)
The chart below illustrates the significant increase in long-term holders’ accumulation of LTC in recent days. Between October 13 and October 17, LTC long-term holders added at least 400,000 LTC to their cumulative balances. The highest addition, amounting to 413,949 LTC, was recorded on October 15, marking the highest inflow since June 2021.
The Holder’s net-influx metric is a strong indicator of the accumulation trend among long-term investors who have confidence in the cryptocurrency. As these investors continue to buy and hold LTC, the supply of coins available for trading on exchanges decreases. This reduction in available supply, coupled with a potential increase in demand, may pave the way for a significant uptick in LTC’s price.
Litecoin: Expert Forecasts and Price Targets
Expert analysis and forecasts provide valuable insights into the potential price movement of Litecoin. Based on on-chain indicators and historical patterns, experts predict a minimum 25% rebound in LTC’s price, reaching the $75 mark. The data on the World In/Out of the Money distribution, which groups LTC holders by their entry price distribution, further supports this bullish forecast.
The current major obstacle to reaching the $75 level is the sell-wall at $65, where 309,810 addresses bought 4.49 million LTC. This cluster of LTC investors presents strong resistance to price movement. However, if long-term holders continue to buy and accumulate LTC, they may overcome this resistance and drive the price towards $75 for the first time since August.
Conclusion
In conclusion, Litecoin (LTC) may have reached a turning point for recovery after a period of stagnation. The accumulation of LTC by long-term investors and the decrease in available supply on exchanges suggest the potential for a price rally. Historical patterns and expert forecasts indicate a minimum 25% rebound in LTC’s price, with a target of $75. However, short-term traders remain unconvinced, and the sell wall at $65 poses a significant resistance level. It remains to be seen whether the confidence of long-term holders will be mirrored by day traders, ultimately driving LTC’s price towards recovery.
