One of the oldest cryptos on the market, Litecoin, has seen its fair share of ups and downs throughout the years. Most of the time, this cryptocurrency has unapologetically followed Bitcoin’s pre-carved path.
For Bitcoin and most other large-cap cryptocurrencies, the previous few days have been rather discouraging. Litecoin was not immune to the general doom and gloom.
LTC’s price consistently hovered around $220 towards the end of November. Following that, it set off on a southward voyage. The cryptocurrency was trading for roughly $158 at the time of this report.
Litecoin’s Institutional Tangent
Apart from Bitcoin’s downturn, a slew of other interconnected causes has left Litecoin in a pickle.
Take the case of Grayscale’s Litecoin Trust, for example. Lately, the share price of LTCN has plummeted. On crypto exchanges, it has been trading at a price that is nothing near the current market price of LTC.
The Litecoin Classic Trust ended at an uninspiring $15 on Friday, according to Grayscale statistics.
It goes without saying that the fundamental rules of demand and supply govern share prices. So, based on the current weak data, it wouldn’t be incorrect to conclude that market players’ interest in Litecoin is rapidly fading.
LTC and LTCN have a strong inverse relationship. For a long time, their prices have been mimicking each other’s moves. As a result, if LTCN’s demand rises, the value of its stock will rise as well. In fact, the price of LTC would follow the same pattern.
Nonetheless, given the current lack of demand, the likelihood of the aforementioned scenario becoming a reality is remote.
One of the oldest cryptos on the market, Litecoin, has seen its fair share of ups and downs throughout the years. Most of the time, this cryptocurrency has unapologetically followed Bitcoin’s pre-carved path.
For Bitcoin and most other large-cap cryptocurrencies, the previous few days have been rather discouraging. Litecoin was not immune to the general doom and gloom.
LTC’s price consistently hovered around $220 towards the end of November. Following that, it set off on a southward voyage. The cryptocurrency was trading for roughly $158 at the time of this report.
Furthermore, according to CoinShares’ most recent weekly report, cumulative institutional flows for this currency were under a million dollars [$0.9 million, to be exact] last week. This, yet again, demonstrates institutional investors’ dwindling desire.
Most large-cap currencies have reaped huge rewards anytime institutions have expressed an interest in them. Examples include Bitcoin, Ethereum, Cardano, and Solana. As a result, institutional interest must re-enter the market for LTC’s price to shift trajectory.
Bleak On-chain Data Trends
At the time of writing, the overall investor attitude appeared to be rather negative. The coin’s Liveliness, or the ratio of the CDD to the CDC, revealed a distinct pattern.
This measure has been on the rise recently, as seen by the graph below. When this indicator is high, it suggests long-term HODLers have been selling their holdings.
This is hardly surprising, given the asset’s diminishing value.
Since mid-November, the coin’s SOPR has stayed below one. While this ratio reflects the degree of realized profits/losses, the 0.98 value at press time indicated that the majority of sellers who quit the market did so at a loss.
As a result, it is unreasonable to expect LTC to perform well until and unless the selling pressure subsides.
Apart from Bitcoin’s assistance, Litecoin plainly requires heavy lifting and purchasing momentum in order to re-enter the market.
Only if these items are checked will LTC be able to easily go north on its pricing chart.
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