Litecoin surges leaving 65% or 5.23 million holders in profit

• Litecoin has surged over the past month leaving 65% of holders in profit.
• LTC has surged by 20.42% on monthly charts.

Since hitting a local low of $64,  Litecoin [LTC] has been on an upward trajectory reaching a high of $98. In fact, over the past month, LTC has increased by 20.42% to trade at $89, as of this writing.

These gains have left many holders in profit while leaving analysts predicting the altcoin’s next price action.

Over 60% of LTC holders currently in profit

According to IntoTheBlock, 65.39% of LTC holders are currently in profit. This makes the highest amount of holders in profit for the first time since April.

Source: IntoTheBlock

Meanwhile, 26.72% or 2.14 million addresses are out of the money, while 7.89% are at the money.

When such a high number of holders is in profit, it risks profit-taking behavior that might push prices down. This phenomenon has been observed by IntoTheBlock analysis, which posited that many out of the money traders bought in 2021 and may sell as they break even.

For context, during the 2021 bull cycles, LTC surged to $413 in May and $302 in November.

This shows that even though Litecoin has surged recently, it remains approximately 78% below the 2021 high. As such, for these holders to break even, the altcoin has to reclaim 2021 levels which doesn’t appear likely now.

Impact on LTC price charts

While the analysis provided by IntoTheBlock provides a promising outlook for Litecoin, it’s essential to counter-check other market indicators.

For starters, as observed above, LTC is currently in a strong upward momentum that could propel the altcoin to hit recent highs.

Source: Tradingview

We can see this momentum because buyers are currently in control of the market. Looking at Litecoin’s MACD, the MACD line is above its signal after making a bullish crossover two weeks ago.

Source: IntoTheBlock

Moreover, with buyers in control, large holders or whales appear to be at the center. Litecoin’s large holders netflow ratio has declined from 5.8% to 1.01% over the past 7 days.

The fewer transfers to exchanges by large holders suggest confidence in the uptrend and amplifies bullish momentum.

Source: IntoTheBlock

Therefore, the recent spike in large transactions implies that these transactions are whales accumulating LTC.

What next?

In conclusion, while LTC is currently enjoying a strong upward momentum, the 2021 holders are unlikely to create resistance, especially in the short term.

Read Litecoin’s [LTC] Price Prediction 2024–2025

However, the altcoin is currently in a bullish phase with buyers in control. Therefore, these conditions could set the altcoin for further gains on price charts.

As such, if these positive conditions hold, LTC will reclaim the $98 level. A breakout from here will see LTC hit $105.