- Litecoin’s price action signaled a lack of enthusiasm or low accumulation.
- On-chain data still supported growing accumulation as swing and retail traders exited.
Litecoin [LTC] has, at some point in the past, been described as the silver Bitcoin’s [BTC] gold. However, this digital silver has been lending itself to the bears more often lately, with weak bullish attempts here and there.
A glance at Litecoin’s recent history, especially after March 2024, indicated low bullish confidence. That appeared to be the case even after the recent crash, despite its slight recovery.
Its brief dip below $50 signaled that it broke below a major support level that remained unbroken since November 2022.
The support break followed by low accumulation and a lack of robust price excitement indicated relatively low demand for LTC. But could this be a short-lived outcome?
Our analysis revealed that Litecoin could soon find the necessary momentum for a strong comeback.
Litecoin holders shifting to a long term focus
Short-term profit-taking has been contributing to bullish suppression. Litecoin’s ownership stats revealed that this suppression might be running out of steam.
The number of HODLers in the last seven months increased from as low as 4.62 million to 8.16 million addresses as of the 6th of August.
Meanwhile, the number of cruisers or swing traders dropped from 2.68 million at the start of 2024 to 1.25 million addresses more recently.
Source: IntoTheBlock
Retail traders had a more modest drop from 564,000 to lightly above 488,000 addresses. These changes indicated a growing focus on long-term HODLing as prices dip lower.
A decline in the number of swing and retail traders suggested that short-term sell pressure may become weaker.
Address stats indicated that new, active and zero balance addresses have declined more recently compared to the situation at the start of the year.
Nevertheless, active address and new addresses have been relatively steady. Active addresses have recently been more than 400,000 and there were over 250,000 new addresses on average.
Source: IntoTheBlock
Notably, the number of addresses with zero balances were between 150,000 and 350,000 on average, much lower than the figures observed at the start of the year (above 1 million addresses).
This could also signal that outflows are on the decline.
Looking at the general address count, AMBCrypto observed an overall positive uptrend in the total number of Litecoin addresses.
Source: IntoTheBlock
Litecoin had 7.82 million total addresses at the start of 2024. That figure has since gone up to the press time number of 8.11 million addresses. These observations indicated that Litecoin was still growing, albeit at a slow pace.
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Also, the low excitement could be due to the fact that it was overshadowed by its bigger and more popular counterparts, especially ETFs and memecoins.
A Litecoin ETF is yet to become reality, and memecoins have been stealing the hype towards Solana [SOL].
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