- Litecoin showcased an impressive 40% price rise last week.
- Selling pressure was rising, which can halt LTC’s bull rally.
Litecoin [LTC] has been on a gaining spree as it registered double-digit growth. This recent price pump pushed nearly 80% of LTC investors into profit. Will this trigger a profit-taking episode, which can put an end to the coin’s bull rally?
Litecoin astonishes investors
Litecoin registered a massive 40% price rise in the last seven days. The bullish trend continued in the last 24 hours as the coin’s value surged by nearly 5%. At the time of writing, LTC was trading at $128.8.
AMBCrypto reported earlier a reason that could have played a major role in this bullish surge. The price movement of LTC might resemble that of XRP, paving the way for a significant surge. Furthermore, this possible increase might happen without the help of a more general altseason.
Meanwhile, IntoTheBlock’s latest tweet revealed that nearly 80% of LTC investors were in profit, which can be attributed to the coin’s upward momentum. In fact, it was the highest level seen since 2021.
Though this looked optimistic, it could also pose challenges for LTC in the coming days. Generally, when the majority of investors are in profit, they tend to sell their holdings and exit their positions. This increases selling pressure and, in turn, puts an end or a halt to an ongoing bull rally.
Is LTC in trouble?
AMBCrypto’s analysis found that Litecoin’s inflows were exceeding its outflows. To be precise, the coin’s outflow touched 164.27k LTC on the 1st of December.
During the same day, the coin’s inflow reached 258.34k LTC, which was a major difference. This clearly indicated that investors were selling their holdings in order to earn profits.
Glassnode’s data also revealed a similar trend. Litecoin’s holder net position change remained red over the last few weeks-a sign of investors cashing out.
Source: Glassnode
The bad news was that this trend could continue further. Litecoin’s fear and greed index had a value of 86% at press time, meaning that the market was in an “extreme greed” position.
Whenever the metric reaches this level, it flags a sell signal, which could motivate more investors to sell their assets. Apart from this, Litecoin’s On Balance Volume (OBV) also registered a decline.
Read Litecoin’s [LTC] Price Prediction 2024–2025
A drop in the indicator hints at a decrease in demand for the asset. Such movements indicate the possibility of a price correction. If that happens, then LTC might drop to its nearest support of $119 once again.
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