Crypto Market Roundup: LTC Falls $3 Short Of All-Time High!
May 7, 2021
With Ethereum charting new highs and Dogecoin doing…well…Dogecoin things, everybody seems to have forgotten about Litecoin. Back in the day, Litecoin used to get the respect it deserved. It was the digital silver to Bitcoin’s digital gold, the Robin to Bitcoin’s Batman, or as Litecoin founder Charlie Lee likes to put it, the Vegeta to Bitcoin’s Goku.
However, over the past couple of years, LTC seems to have fallen off a bit, dropping below the top 10 CoinMarketCap list. But it looks like the LTC bulls have finally woken up from their slumber. Litecoin has had a pretty impressive week going up from ~$328 CAD, reaching a 7-day high of $452, falling just $3 short of its all-time high earlier today. Since then, it has corrected to $431.
However, this could be just the beginning. “Crypto Tony” believes that LTC’s rally could be very bullish.
“Litecoin is going to run so hard it is going to mentally affect those left behind. Bags are packed and ready for launch. The BTC pair tells a story and I want us all to be a part of that story”
Litecoin Faces Correction On The Verge Of ATH
So, why did Litecoin not reach its all-time high this time around? Simple, the whales started selling off. Let’s look at some on-chain metrics from Santiment to understand this.
Up first, we have the “Age Consumed” metric.
Spikes in the age-consumed metric often indicate that many coins that have been sitting idle for an extended period have started moving. Usually, when this precedes a price drop, it shows that someone with a large amount of tokens decided to pocket some profits by selling off their LTC.
Here is another interesting metric for you to check out.
The chart above shows the Mean Coin Age of Litecoin, aka the average amount of days that all LTC tokens stayed in their current addresses. As you can see in the chart, there are two noticeable drop-offs, which indicate an increased movement of LTC tokens between addresses. By combining with the Age Consumed metric, we can safely conclude that the addresses holding loads of LTC have been moving their tokens to the exchanges to sell them off.
But which whales are we talking about here? Who were the ones who sold off? Well, let’s look at the token distribution to get a better understanding.
Ah, see? Now it makes sense.
It seems like the number of addresses holding 100,000 to 1 million LTC tokens dropped by 1 from 105 to 104, so someone here has sold off their bag.
People Still Flowing Into Litecoin
The blockchain analytics firm, Glassnode, noted a significant spike in the number of active Litecoin addresses despite the slight correction.
As such, there is a rising demand for LTC despite the drop. This is a very positive sign since it shows us that people are flowing in despite this slight price drop.
In Closing
Litecoin has truly roared back this week and re-entered the top 10 coin list. With addresses flowing in despite the recent correction, the future looks good for LTC holders.
Oh, and before I go, do you like Bitcoin? Do you like free Bitcoin? I sure do.
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