According to recent data from IntoTheBlock, about 78% of Litecoin (LTC) addresses are by long-term holders or hodlers (hold on for dear life).
Such holders buy when prices are low and instead of selling when prices go high, they tend to stick to their holdings, waiting to accumulate more when prices see a dip again. This is something that is known about loyal investors and has been the same over the years, especially during times when prices go down a lot.
Moreover, in the overall current market cycle this year, the drop in long-term holdings is less than in past cycles, which shows that many holders are keeping their investments. They seem to be waiting for higher prices rather than selling now.
Meanwhile, Litecoin’s current price action resembles what occurred in 2020. During the last quarter of 2020, Litecoin price rallied from around $60 to over $160 at the beginning of 2021 following the U.S. elections.
This same price increase happened again during the final leg of 2024. If this trend continues, analysts believe Litecoin can reach $200 by early 2025. Its recent surge in volume and positive buy signals also indicates that the market interest is increasing.
Long-term investors tend to stay relaxed, but short-term traders are often more involved in the market by readjusting their positions based on changing market conditions. This is typical while aiming for desirable quick gains in a crypto market.
However, even through highs and lows, a majority of Litecoin holders are holding on to their position and hoping to get greater returns later. Historically, Litecoin has shown that its price normally goes up and down in cycles, specifically during the election years.
The 2020 rise came after the U.S. elections, and this year it looked life a rebound taking place. More investment firms have also taken interest, as Canary Funds has applied for a Litecoin ETF.
These factors make people believe that Litecoin might have a big price rise, with most people thinking it will go beyond $200 soon.
Right now, LTC is down by 8% to $97 following Fed Chair Jerome Powell’s speech yesterday that the feds will neither buy or hold Bitcoin. This causes a sell off in the market marking it red.
Also Read: Bitcoin Dips to $92,000: Why Drop Despite Positive Sentiments?
