In recent days, Litecoin's price has pulled back from its recent highs, once again testing a crucial support level. This could indicate a potential for temporary recovery or deeper decline depending on market dynamics.
Recent Litecoin Price Dynamics
At press time, Litecoin exchanged at $86.05 due to an 11% retracement from its weekly high. The price retested the $81-$87 support range, from which reversals have occurred multiple times in recent months. However, weak market sentiment remains, leaving further downside a possibility.
Litecoin Holder Activity
On-chain data reveals that spot outflows dominated in March but considerably declined over the last 4 weeks. Meanwhile, there were almost no spot inflows, confirming weak bullish activity. Derivatives volumes fell by 17.40% to $693.77 million, with open interest cooling off by 4.26% to $455.51 million. These figures indicate a cooling of sell pressure, although investors remain hesitant to re-enter. Address activity indicates a rise in the number of addresses with zero balances, suggesting low confidence among holders.
Analysis of Profitability and Litecoin Holder Stats
According to IntoTheBlock data, the number of holders at a loss surged to 43% while those in profit were at 38%. It's notable that 78% of holders acquired Litecoin more than 12 months ago. Weak whale activity could explain the lack of recovery, but their return could facilitate a rebound.
Litecoin's future remains uncertain amid a volatile market and weak institutional activity. The absence of substantial volume increase suggests that accumulation might still be pending.
