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Litecoin (LTC) paints a bearish picture as hodlers lack confidence

By:
on Aug 28, 2023
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  • Litecoin maintained a downside trend since its highly awaited halving.
  • Buying momentum remains low despite surged accumulation.
  • LTC price seems poised for decline if it falls beneath a vital support zone.

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Litecoin (LTC) has seen a downside trend since its much-anticipated halving. The alt touched monthly lows after successful completion of the event that players awaited for four years. Meanwhile, investors have capitalized on the dips to accumulate the token at discounted prices.

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Nonetheless, surged accumulation failed to generate satisfactory buying momentum. Litecoin seems poised for a notable decline if it loses its $63 – $65 support floor, even with the uptick in accumulation. Furthermore, hodlers have lost confidence in the alt.

Litecoin Hodlers lose confidence

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Litecoin has maintained a consolidation mode amidst bearish moves since early August. Such a performance has welcomed discussions as LTC fails to repeat previous post-halving upticks.

Glassnode showed Litecoin’s Hodler Net Position Change hovered at 362,378. The indicator tracks position shifts among longer-term holders within a month. A negative figure signals massive liquidations, whereas a positive change suggests hodlers buying new positions.

Glassnode indicates that sellers significantly sold LTC before halving before subsequent accumulation after the event renewed optimism of potential surges.

While Litecoin has seen an increased funding rate since 20 August, IntoTheBlock shows the average balance index has plummeted relentlessly from 13 August’s $671 to today’s $528.

Source – IntoTheBlock

That shows fading investor confidence in Litecoin, suggesting a potential price dip if the altcoin fails to ensure stability beyond the crucial support floor at $63 – $65.

Litecoin price outlook – what next?

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Litecoin attempted to overcome the hurdle between $66 and $67 recently. However, massive bearishness in this region saw LTC plunging to $65.04 at press time, losing 0.7% within the past 24 hours.

The struggling Relative Strength Index and plummeting MAs confirm bearish dominance. That can drag prices at the lower boundary of the consolidation setup before hitting the support at $63 – $65.

Losing the foothold will catalyze a massive selling bias, taking the altcoin toward the $50 region. However, bulls will not surrender without a fight, as they should defend $60 and target levels beyond the 50-day Exponential Moving Average at $66. That will maintain LTC within bullish territory, opening the path to $76.

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