Litecoin wallets are depleting quickly – what’s next for LTC prices?

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Litecoin (LTC) has seen a significant decline after a week of steady growth, creating potential headwinds going forward. According to recent data, a significant portion of wallets have sold their Bitcoin holdings.

At the time of writing, LTC is trading at $74.60, down 1.1% from the previous day’s peak price. This decline also had an impact on the market capitalization of PPAs.

With Litecoin’s market value falling by 55% compared to Bitcoin in just five months, the LTC price chart paints a bleak picture. This edged decline in value indicates failing confidence among investors who are deciding to sell more and more of their shares.

Litecoin Slowdown: Tiny Investors Flee, Raising Concerns About Long-Term Viability

Santiment claims that 199,000 wallets that held Litecoin about 10 days ago no longer hold the cryptocurrency. This pattern may explain why, compared to other previously discussed notable cryptocurrencies, the coin has performed relatively poorly over the past week and year.

Interestingly, petite wallet holders make up the majority of portfolios that collapse, which contrasts with the persistence that sharks and whales are showing in the cryptocurrency space, according to Santiment.

It appears that the main group selling their shares are petite investors – often the most susceptible to market fluctuations – probably out of concern for the long-term stability and liquidity of their investments.

The significant departure of almost 199,000 wallets that previously held LTC is a noteworthy phenomenon that should not be taken lightly. The significant decline in selling activity reflects a more widespread sense of fear, uncertainty and skepticism that has negatively impacted assets.

LTC market cap currently at $5.499 billion on the daily chart:

According to the latest data, as many as 2.13% of all Litecoin wallets have sold out of their LTC since the end of November. On the Litecoin network, at least 9.11 million addresses currently contain zero coins.

As some of the top cryptocurrencies have experienced incredible price increases – gaining over 100% this year – Litecoin has remained relatively stable, showing growth of less than 4% since inception.

For about two weeks, the LTC price has been constantly oscillating between $70 and $75. During the second half of the month, the trading range was between $68 and $72.

LTC resilience: Coping with liquidation in leveraged trading

To forcibly terminate an investor’s leveraged position when the investor loses all or part of his or her initial margin deposit, the exchange uses a process known as liquidation. Occurs when a trader does not have enough money to keep a leveraged position open or is unable to meet the margin requirements for that position.

Source: Bitpay

LTC maintained high trading volume even as its price fell sideways. In addition, the MVRV rate was higher, which is often a sign of good health.

However, even with the decline, its Relative Strength Index (RSI) remained above the neutral threshold of 50. Thus, the coin may be able to please investors and continue its bull run.

Meanwhile, the world’s largest cryptocurrency payment processor, BitPay, now accepts LTC as its preferred coin. Outside of Bitcoin [BTC] and Ethereum [ETH]has demonstrated its superiority in practical applications, accounting for 34% of BitPay payments in cryptocurrencies.

(The content of this website should not be construed as investment advice. Investing involves risk. When investing, your capital is subject to risk.)

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