Lately, the whole crypto market has been witnessing several ‘red’ days and has lost about $30 billion in the past 3 days. Litecoin lost about 14.28% on the 26th of February, however, it has pared back just 3% of that loss today and is currently trading at $64.17.
Litecoin, the 7th largest cryptocurrency based on market cap, is still up 60% in 2020 so far but is presently trading close to January’s lowest level.
As the entire market is in the red, most of the large-cap altcoins that had healthy gains are currently trading poorly against Bitcoin. Litecoin specifically has dropped about 6% against Bitcoin in the past 24 hours.
Regardless of Huge Drops, LTC is Still Bullish
Interestingly, the LTC is trading above a key support level, causing traders to maintain a bullish stance. Traders see this correctional move as an opportunity to “buy the dip.”
However, Litecoin, as well as other large-cap altcoins, is currently at the mercy of Bitcoin. If Bitcoin were to experience a serious hit right now, it would have a ripple effect, causing other altcoins to drop significantly. Market experts believe that this scenario can be avoided if Bitcoin holds above the $9,300 level.
However, at the moment of writing, Bitcoin is trading well below the $9,300 support and is at $8,916.
Long-Term Holdings Still Making Numbers
Ironically, while the price is currently at a critical red level, the fundamentals behind Litecoin are doing considerably well.
Based on data from Intotheblock, a crypto data service provider, the total number of Litecoin addresses with funds has just reached an all-time high at 5.2 million addresses.
2018 was a terrible year for cryptocurrencies in general with some losing as much as 95% of their total value. Litecoin also lost more than 90% of its original value and is still recuperating from that loss. Its price is still down 83% from its $373 high. In 2019, however, things started looking up for crypto assets. 2020 is also looking like a good year for cryptocurrencies.
The drop of 2018 did nothing but attract more HODLers for Litecoin as more and more long-term traders have been recorded to be buying and holding it’s tokens. Over 1.94 million addresses (46% of the total LTC holding address) have been recorded to have been HODLing over the past year.
