Litecoin Sell-Off by Small Traders Might Indicate Market Rebound

Litecoin has experienced a notable price drop and decreased social interest, but a recent sell-off by small traders might signal a market turnaround.

Litecoin, ranked 25th in terms of market capitalization, has faced challenges recently. Data from crypto behavior analysis platform Santiment shows it lost more than 36% of its value in the last three months.

Litecoin has not been generating much buzz on social forums, with its market value dropping 36% since its April 1 peak. A sudden liquidation of 45.2K net 0.1-1 LTC wallets indicates that small traders are exiting the asset. This marks the highest drop in LTC small holders in a 24-hour period since October 2022. Over 45,000 wallets holding between 0.1 and 1 LTC have reportedly exited their positions in the last 24 hours.

Santiment analysts suggest that this sell-off could indicate a potential bullish phase for Litecoin. When weaker hands sell off their cryptocurrency, the remaining investors tend to be more confident, which can lead to price recovery.

Interestingly, a recent analysis by a TradingView user supports Santiment’s assertions. The trader suggested that prevailing market trends could create a favorable environment, potentially pushing the price of LTC to new highs soon.

Data shows that at the time of writing, LTC was priced at $63.49, marking a 1% drop from its position on August 26. Additionally, the price represented a 5.2% loss over seven days and a more severe 9.6% plunge over one month.

Despite these challenges, Litecoin has demonstrated resilience. Since the August 5 crypto crash, triggered by an unfavorable U.S. jobs report, LTC has maintained a steady uptrend with no major price drops.

$LTC: Speaking about a V-Shape Recovery. Pretty strange looking chart as this isn’t something we see often in crypto. Basically been straight up with no major dips since the flush early this month. Interesting price action worth noting. I’m not doing anything with this yet.

Market watchers suggested that the consistent buying pressure around the coin could explain the price action. Furthermore, Litecoin’s on-chain activity has doubled over the last year. Data from IntoTheBlock shows a growth from 196 million LTC moved on-chain to more than 412 million LTC in the first two weeks of August.

Stay updated with the latest developments in the world of cryptocurrencies and finance by exploring more news on Global Crypto News.