Litecoin Downturn: Small Investors Flee, Raising Long-Term Viability Concerns<\/strong><\/h2>\nSantiment claims that 199,000 wallets that contained Litecoin around 10 days ago are no longer in possession of the cryptocurrency. This pattern could explain why, in comparison to other prominent cryptocurrencies previously discussed, the coin has performed comparatively poorly over the last week and year.<\/p>\n
\n\u26a1\ufe0f Approximately 199K wallets that held $LTC<\/a> 10 days ago, no longer hold any coins. This is the biggest drop in wallets since October 2022. $LTC<\/a>‘s market value vs. $BTC<\/a> has dropped -55% in 5 months, but #FUD<\/a> & small wallets dropping could turn this around. https:\/\/t.co\/tIAj6ULd95<\/a> pic.twitter.com\/SuhqULLfFm<\/a><\/p>\n\u2014 Santiment (@santimentfeed) December 7, 2023<\/a><\/p><\/blockquote>\nInterestingly, small-scale holders account for the majority of the wallets that collapse, which contrasts with the tenacity exhibited by Sharks and Whales in the cryptocurrency space, according to Santiment.<\/p>\n
It seems that small investors\u2014who are frequently the most susceptible to market swings\u2014are the main group selling their holdings, presumably because they are worried about the investments’ long-term sustainability and liquidity.<\/p>\n
The significant departure of almost 199,000 wallets that previously contained LTC is a noteworthy phenomena that should not be disregarded. The significant decline in selling activity reflects a more widespread feeling of apprehension, uncertainty, and skepticism that has negatively impacted the asset.<\/p>\n
![](\"https:\/\/www.tradingview.com\/x\/lGyGOVYU\/\")
LTC market cap currently at $5.499 billion on the daily chart: TradingView.com<\/a><\/pre>\nUp to 2.13% of all Litecoin wallets have sold off\u00a0their LTC since late November, according to the most recent data. On the Litecoin network, at least 9.11 million addresses now hold zero coins.<\/p>\n
As some of the top cryptocurrencies have experienced incredible price increases\u2014gaining over 100% in the year thus far\u2014Litecoin has remained relatively stable, showing a growth of less than 4% year to date.<\/p>\n
For about two weeks, the price of LTC has been consistently fluctuating between $70 and $75. In the second half of the month, there was a narrow trading range between $68 and $72.<\/p>\n
LTC’s Resilience: Navigating Liquidation In Leveraged Trading<\/strong><\/h2>\nIn order to forcefully end a trader’s leveraged position once a trader loses all or a portion of their initial margin, the exchange uses a process known as liquidation. It occurs when a trader doesn’t have enough money to maintain an open position in a leveraged position, or can’t meet the margin requirements for the position.<\/p>\n
![\"\"](\"https:\/\/www.wncen.com\/wp-content\/uploads\/2023\/12\/a-52.png?resize=624%2C360\")
Source: Bitpay<\/pre>\nLTC maintained a high trading volume even as its price went sideways. Additionally, its MVRV ratio was higher, which is often an indication of good health.<\/p>\n
However, even with a decline, its Relative Strength Index (RSI) stayed over the neutral threshold of 50. By doing this, the coin may be able to satisfy investors and continue its bull run.<\/p>\n
\u26a1\ufe0f Approximately 199K wallets that held $LTC<\/a> 10 days ago, no longer hold any coins. This is the biggest drop in wallets since October 2022. $LTC<\/a>‘s market value vs. $BTC<\/a> has dropped -55% in 5 months, but #FUD<\/a> & small wallets dropping could turn this around. https:\/\/t.co\/tIAj6ULd95<\/a> pic.twitter.com\/SuhqULLfFm<\/a><\/p>\n \u2014 Santiment (@santimentfeed) December 7, 2023<\/a><\/p><\/blockquote>\n Interestingly, small-scale holders account for the majority of the wallets that collapse, which contrasts with the tenacity exhibited by Sharks and Whales in the cryptocurrency space, according to Santiment.<\/p>\n It seems that small investors\u2014who are frequently the most susceptible to market swings\u2014are the main group selling their holdings, presumably because they are worried about the investments’ long-term sustainability and liquidity.<\/p>\n The significant departure of almost 199,000 wallets that previously contained LTC is a noteworthy phenomena that should not be disregarded. The significant decline in selling activity reflects a more widespread feeling of apprehension, uncertainty, and skepticism that has negatively impacted the asset.<\/p>\n Up to 2.13% of all Litecoin wallets have sold off\u00a0their LTC since late November, according to the most recent data. On the Litecoin network, at least 9.11 million addresses now hold zero coins.<\/p>\n As some of the top cryptocurrencies have experienced incredible price increases\u2014gaining over 100% in the year thus far\u2014Litecoin has remained relatively stable, showing a growth of less than 4% year to date.<\/p>\n For about two weeks, the price of LTC has been consistently fluctuating between $70 and $75. In the second half of the month, there was a narrow trading range between $68 and $72.<\/p>\n In order to forcefully end a trader’s leveraged position once a trader loses all or a portion of their initial margin, the exchange uses a process known as liquidation. It occurs when a trader doesn’t have enough money to maintain an open position in a leveraged position, or can’t meet the margin requirements for the position.<\/p>\n LTC maintained a high trading volume even as its price went sideways. Additionally, its MVRV ratio was higher, which is often an indication of good health.<\/p>\n However, even with a decline, its Relative Strength Index (RSI) stayed over the neutral threshold of 50. By doing this, the coin may be able to satisfy investors and continue its bull run.<\/p>\nLTC market cap currently at $5.499 billion on the daily chart: TradingView.com<\/a><\/pre>\n
LTC’s Resilience: Navigating Liquidation In Leveraged Trading<\/strong><\/h2>\n
Source: Bitpay<\/pre>\n