The bear market blues couldn’t dampen Litecoin price action as LTC charts over 25% daily gains on Nov. 23.
Litecoin (LTC) price gains outpaced most cryptocurrencies, despite the FTX-induced doom in the crypto market. While many of the top cryptocurrencies saw price increases as the market rallied, the LTC gains had a different backstory.
Litecoin took the second spot on the Coinmarketcap gainers list with a gain of 27.16%, ahead only by CRV with a daily gain of over 45%. With LTC getting back on track and some interesting gains for holders, Litecoin deserves a deep dive.
Litecoin Overshadows Top Cryptos
While the top cryptocurrency only managed to gain short-term price momentum, LTC price tested its highest level since November 14, 2021.
A look at the LTC short-term trajectory suggested that Litecoin rallied on fresh retail sentiment as 24-hour trading volume exceeded $2.18 billion, appreciating by 188.80%.
The recent bullish run charted by LTC can be partially credited to the upcoming mining reward halving that is due in eight months. This will be the third halving for LTC and it is set to bring about a positive change in the coin supply dynamics.
Amid rising prices, LTC saw a return of weighted sentiment into positive territory as well as an increase in social volume.
One of the major reasons behind the positive sentiment received recently was the huge increase in profits for LTC holders. The 365-day MVRV made it back into positive territory, indicating that long-term traders were back in profit for the first time since December 2, 2021.
A trend change is a turning point indicating some short-term optimism that could fuel the price action.
However, a 30-day MVRV above 31%, i.e. in the danger zone, could lead to some short-term price pullback. Notably, an increase was also observed in the 90-day MVRV. With 365-day, 90-day and 30-day MVRV in positive territory, this pointed to a healthy profit for long term as well as mid-short term LTC holders.
Whale and Shark Staking LTC
In the past two weeks, addresses holding 1,000 to 100,000 LTC deposited $43.4 million in coins. It is suggested to take a look at the supply distribution of coins
In addition, since November 2, one of the largest LTC whale cohorts from 1 million to 10 million coins has increased its bag by 2.7 million LTC coins. This group adding 2.4 million LTC to their bag could be a major catalyst for the price.
The market is looking a bit overheated at press time so while LTC gains could continue, a short-term pullback will not come as a surprise. The in/out of the money price around the Litecoin suggested no major resistance for the price till the $89 level.
In the near term, however, in case of a bearish reversal, the price could decline below $75 to retest the lower range. Nonetheless, the $70 mark will act as a strong support in case of a pullback as 107,180 addresses held over 1.2 million LTC at the price level.
With the third LTC halving due in 2023, the long-term outlook for Litecoin is still looking bright.
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