LTC Holders Praise Growth, But Short Positions May Disappoint
• Recently, Litecoin witnessed increased popularity due to issues surrounding the BTC network.
• LTC holders stood in profit as of 22 May as per data from IntoTheBlock.
• Transactions on the LTC network witnessed a surge of more than 397%, along with a 25% increase in hashrate year-to-date.
Recently, Litecoin [LTC] saw an influx of users wishing to escape Bitcoin’s [BTC] high transaction and miner fees. According to data from IntoTheBlock, LTC witnessed significant growth in 2023. As of 2 May, 60% of LTC holders stood in profit, and 50.55% of the total supply was held by retail investors. Furthermore, transactions on the LTC network witnessed a surge of more than 397%, along with a 25% increase in hashrate year-to-date.
A look at LTC’s daily chart did seem a little concerning as it was exchanging hands in the red at the time of writing. However, LTC’s Relative Strength Index (RSI) managed to stay above the neutral line at 55.69 which could be taken as an indication that a small push in the buying trend could push the RSI higher. Furthermore, the Awesome Oscillator (AO) and Moving Average Convergence Divergence (MACD) flashed bullish signals at the time of writing. The AO flashed green bars above the zero line which could be taken as a bullish indication while MACD line (blue) stayed above signal line (red).
At the time of writing, amount of Litecoin holders witnessed an increase over last two months and stood at 8.38 million which indicates positive sentiment among crypto community regarding litecoin performance lately but its social dominance and weighted sentiment didn’t reflect this sentiment accurately leading to dangerous situation for those who hold litecoins long term .
However, all could not be deemed well for LTC as holders shorting token could give way to bears which can lead to losses if market conditions remain bearish for extended period . Also recent surge is also largely attributed bitcoin problems , if bitcoin starts working smoothly then there is no guarantee that litecoin will keep up its current success rate .
Overall , Litecoin has seen impressive growth this year despite bearish market conditions due its features like low transaction fee , halving approaches , etc . But still its important for user to do their own research before investing into any asset and play safe when it comes about longterm investments since sudden changes in market dynamics can lead to huge losses .