As LTC declines, Litecoin shrimps
Litecoin's price is down 5% in the past week and 11% in the past 30 days, with the altcoin hovering around $63.
According to CoinGecko, LTC has fallen 84% since hitting an all-time high of over $410 in May 2021.
A downtrend that saw one of the first cryptocurrencies slide out of the top 10 by market capitalization now has small wallets selling as price nears critical support.
Market data and on-chain analytics platform Santiment has highlighted the flood of Litecoin shrimp containers – wallet addresses below 1 LTC. These wallets have been sold for over 45,200 LTC, but analysts say this could be a “turn”.
“Litecoin isn't setting social media on fire, down -36% in market value since its April 1st peak. The sudden liquidation of 45.2K net 0.1-1 LTC wallets shows that small traders are finally exiting the OG crypto asset. Small fish are impatiently ‘jumping ship'.” It usually signals a reversal for the asset to start turning bullish again, sentiment analysts wrote on X.
76% of Litecoin wallets in losses
Over the past few months, the selloff has been linked to a decline in prices from above $110 in early April. In the year After recovering from a low of $56 following the crypto crash on August 5, Litecoin is back below $64 and above its main support zone around $60.
Per to TheBlockthe exit/exit indicator is usually a bearer. About 76% of the addresses are in the current price loss and only 18% have made a profit. Notably, 22% of addresses have held LTC for less than a year and may be part of the minority holdings.
However, 78% of wallets hold altcoins for more than a year.
Litecoin price chart
0n the daily chart, both the RSI and MACD indicators suggest that the bears may lower the price of Litecoin.
The price is below the 50-day SMA, which can be used as the main resistance level around $66. On the flip side, further weakness could see LTC seek a demand reload zone towards $55.
