- The Litecoin price is hovering around $63, with the altcoin down more than 5% over the past week and 11% over the past 30 days.
- According to CoinGecko, LTC has fallen 84% since its all-time high of $410 in May 2021.
- One of the first cryptocurrencies to fall out of the top 10 by market cap is now seeing a downtrend, with smaller wallet holders now selling as the price approaches a key support level.
Market intelligence and on-chain analytics platform Santiment has highlighted the decline in Litecoin Shrimps Holders (wallet addresses holding less than 1 LTC). These wallets have sold off over 45,200 LTC, but analysts say this could be a “reversal.”
“Litecoin has failed to set social forums alight as its market cap has fallen -36% since its April 1 peak. The sudden liquidation of 45.2K net 0.1-1 LTC wallets indicates that small traders are finally capitulating in the OG crypto asset. Small fish impatiently ‘jumping over the boat’ is a reversal signal that the asset is once again turning bullish,” the Santiment analyst wrote on X.
Litecoin Wallet Losses 76%
The selloff over the past few months coincided with the price drop from above $110 in early April. After bouncing back from the low of $56 following the cryptocurrency crash on August 5, Litecoin fell back below $64 and neared a key support area around $60.
sugar Into the blockThe In/Out of the Money indicator is generally bearish. At the current price, about 76% of addresses are losing money, while only 18% are making profits. Notably, 22% of addresses have held LTC for less than a year, which could be part of the capitulating small holders.
However, 78% of wallets have held the altcoin for more than a year.
Litecoin Price Chart
On the daily chart, both the RSI and MACD indicators are indicating a downtrend that could push the Litecoin price lower.
The price is below the 50-day SMA, which could act as a major resistance level around $66. On the other hand, further weakness could see LTC find a demand replenishment zone around $55.