Litecoin (LTC)'s Recent Price Recovery Continues to Display Multiple Twists and Turns

This chart shows $LTC belonging to long-term holders based on UTXOs. These long-term Litecoin holders display distinct patterns across market cycles.

Litecoin (LTC) has been a hot topic in the crypto sphere as the digital asset continues to recover from the recent market crash. Now, crypto analyst IntoTheBlock is highlighting how this recovery is being driven by long-term holders, according to UTXOs (Unspent Transaction Outputs) metrics.

In a recent post on X, the crypto analyst explained that Litecoin is going through a phase of token reaccumulation, mainly driven by whales, and it’s displaying a similar pattern to what was seen 3 to 5 years ago.

“This chart shows $LTC belonging to long-term holders based on UTXOs.These long-term Litecoin holders display distinct patterns across market cycles. The red boxes mark wallets that accumulated in the previous bull run and have been holding for 3 to 5 years. They tend to sell…”

This chart shows $LTC belonging to long-term holders based on UTXOs.

These long-term Litecoin holders display distinct patterns across market cycles. The red boxes mark wallets that accumulated in the previous bull run and have been holding for 3 to 5 years. They tend to sell small amounts, if any, of their coins, and their selling activity is usually brisk. Conversely, short-term holders, highlighted in purple, are more likely to sell in large quantities, and their selling is slow to materialize.

In the current cycle, we can see that long-term holders are accumulating LTC again, similar to what happened 3 to 5 years ago. It’s a slow process, and short-term holders are selling more, which contributes to the strong resilience of LTC in this consolidation phase.

Credit : @InTheBlock__

The crypto analyst adds that UTXOs older than five months (155 days) are usually used to identify long-term holders. On the other hand, those who hold crypto for less than five months (less than 155 days) are short-term holders, typically considered as “weak” hands.

The above metrics shows the percentage of Litecoin tokens held for the last 5 months has been increasing, similar to the accumulation patterns seen three to five years ago. This trend showcases a behavior of holders preferring to hold onto their LTC rather than sell despite the heightened volatility.

Historically, this resilience among long-term Litecoin investors has played a crucial role in setting the stage for market declines and triggering subsequent uptrends. As these patient investors continue to buy, it reduces the readily available circulating supply of LTC, in turn, making the cryptocurrency scarcer.

From this perspective, the current situation for Litecoin appears to be a healthy consolidation phase. The data suggests that many traders and investors still regard Litecoin as a valuable long-term investment, which bodes well for the prospects of a bullish continuation.