Litecoin Long-Term Holders Accumulating Coins

For most of April, things changed for many crypto markets, including Litecoin [LTC]. However, this is not about the price performance but rather a notable shift in the Hodler Net Position Change.

The Hodler Net Position Change measures whether investors are cashing out or accumulating coins. A negative value means investors are selling, while a positive value suggests accumulation. According to Glassnode data, the Hodler Net Position Change turned positive on April 27th, indicating that long-term holders bought 57,095 Litecoin coins.

Source: Glassnode

This metric was negative from mid-February to March, leading to speculation that Litecoin might not be among the altcoins expected to perform well in the coming months. However, the consistent positive net position change since April 5th suggests that Litecoin might defy bearish expectations and move towards a bullish trend.

When writing, Litecoin traded at $18.37, representing an 18.42% decrease in the last seven days. With a possible increase to $110 in the short term, Litecoin might climb even higher in the coming months.

Bulls Preparing For A Potential Rally

To understand Litecoin’s long-term potential, we analyzed other metrics that could impact the coin. First, we looked at the dormant circulation, which tracks the number of unique coins idle for a long time but transacted in a day. Typically, spikes in dormant circulation cause prices to decrease.

However, the 365-day dormant circulation on the Litecoin network was at its lowest since April 9th. This low figure suggests that most long-term holders would rather keep their coins than sell them cheaply.

Furthermore, the Mean Dollar Invested Age (MDIA), the average age of all coins measured by the purchase price, fell to 348. If the average age of investments in Litecoin had increased, it would have implied that the coin was close to a local top. But since it decreased, it indicated that a bull run could be around the corner.

Source: Santiment

The projected bull run does not guarantee Litecoin will rise to the $400 region. However, seeing the coin trade between $180 and $250 cannot be ignored.

The potential rise might not appear linear. If Litecoin jumps, it might undergo a correction at a different point. A decrease below $84 might be possible before the coin tries to double or triple its value.

Furthermore, the author’s views are for reference only and shall not constitute investment advice. Before purchasing, please ensure you fully understand and assess the products and associated risks.