In the midst of Bitcoin’s ongoing price fluctuations, altcoins are encountering a tough trial marked by substantial price declines. In the upcoming week, investors are eagerly anticipating significant developments, including the announcement of the Fed interest rate decision on the following Wednesday, following FTX asset liquidations and the release of inflation data. Nonetheless, amidst all these events, Litecoin has reached a notable milestone.
On September 11th, Litecoin’s price fell below $60, marking the first time since the well-known FTX crash in November 2022. While many other altcoins tested their historic lows, Litecoin (LTC) experienced a relatively more favorable outcome. On-chain data mirrored the optimism of LTC’s long-term investors.
During the notable FTX Exchange crash in November 2022, Litecoin’s price plummeted from $73 to $50, representing a 33% decline. Nevertheless, thanks to the resolute support from long-term investors, LTC swiftly rebounded, surging to $85 before the year’s end. Current on-chain data hints at a similar pattern emerging once again.
Predictions for LTC Prices
On September 10th, the count of addresses held by long-term investors surged to an all-time high (ATH) of 5.02 million. This coincided with LTC reaching its peak for 2023 at $114.5, which occurred in July. Current data indicates a notable increase of 602,000 addresses compared to the figures from the same period. Additionally, during this timeframe, long-term investors also accumulated an additional 3.2 million LTC.
This situation bears resemblance to the upswing observed during the FTX crash, where between November 6th and December 5th, there was an increase of 150,000 addresses.
Despite the recent decline in its price, current data highlights a notable degree of optimism among investors regarding the future of the Litecoin network. While numerous major altcoins are witnessing sharp declines to new all-time lows amid investor apathy, it can be observed that LTC has been relatively more fortunate in this context. This favorable situation is also linked to the potential classification of LTC as a non-security. Proof-of-Work (PoW) networks issue tokens through mining, a process that doesn’t align neatly with the SEC’s definition of investment contracts.
Furthermore, larger Litecoin holders, often referred to as “whales,” with balances ranging from 10,000 to 100 million LTC, have displayed a degree of optimism as well. According to Santiment data, these whales have acquired 40,000 LTC over the past two days. Between September 10th and September 12th, the cumulative balance held by this group of whales increased from 46.63 million to 46.67 million LTC. In a potential recovery scenario, achieving a target price of $80 could prove appealing.