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Litecoin, one of the industry’s pioneering cryptocurrencies, has broken a new record in terms of HODLer count, according to recent on-chain data. Over 5 million long-term holders now form part of its network, hinting at a growing confidence among these investors. But will this uptrend in holders translate to positive price action?
LTH: A New Record and What It Means
Data sourced from market intelligence entity, IntoTheBlock, revealed that Litecoin’s long-term holders (LTH) – users who’ve retained their coins for at least a year – have touched a record high. It’s pivotal to mention that the definition of LTH by IntoTheBlock differs from other platforms that might identify LTHs as those holding for around five to six months.
Historical data portrays a robust surge in Litecoin HODLer counts, particularly since last year, where an exponential rise is evident. This indicates an unwavering faith among investors in Litecoin’s long-term potential, even when its price hasn’t been particularly encouraging.
A Dichotomy: Rising Holders vs. Stagnant Price
While the number of LTHs has skyrocketed, Litecoin’s price hasn’t shared the same fortune. Currently pegged at approximately $63, it’s been a predominantly lateral move for Litecoin’s price after its descent in mid-August. This disparity between growing holders and stagnant price suggests that a section of Litecoin’s community remains bullish about its long-term potential, irrespective of short-term volatilities.
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The surge in LTHs can be interpreted in two primary ways:
- It exemplifies a reduced supply in the open market since a significant portion is held by staunch believers, reducing the probability of massive sell-offs.
- It might also indicate that many are waiting for a substantial price surge before considering liquidating their holdings.
The Price Path Ahead
IntoTheBlock’s insights into the concentration of investors at various Litecoin price points, termed as ‘cost basis’, provide a glimpse into potential resistance zones for the cryptocurrency. For instance, the high concentration range of $64.9 to $69.29 might act as resistance, as investors who previously incurred losses could contemplate selling once they break even.
Interestingly, the subsequent price range seems relatively less populated, indicating a smoother journey for Litecoin if it attempts to touch the $69 mark. Yet, the journey beyond this point seems challenging given the heavy concentration in the ensuing price brackets.
Litecoin’s rising HODLer count is undeniably an optimistic sign for the coin’s long-term health. Yet, the path ahead in terms of price is layered with challenges. It remains to be seen if this robust holder foundation can propel Litecoin through these barriers in the coming months.
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