Categories: Market

Will Litecoin become the center of the FOMO of Senior Coins?

When AMCTheatres switched on the crypto payment option, Litecoin (LTC) saw significant growth. The reason seems good, and even additional numbers have shown that it could be a natural increase in the short term.

However, upon further investigation, it appears that Litecoin has started to move in a pattern where it rises significantly, hangs around for a while, and then falls back down again, erasing all previous gains.

This can be found on the price chart and we look at the events for that year.

Whenever there is a big bull run, there is always a decline of a similar magnitude. The only rallies that actually contribute to LTC’s actual growth are those below 10%.

Source: TradingView

It has taken LTC three years to break through since it hit an all-time high (ATH) shortly after it was born.

Litecoin reached ATH in 2017 | Source: TradingView

All of this is proof that Litecoin has become the FOMO center of senior coins in the market. Although applied consistently in recent years, investors only appear when it is trendy.

But is that specific to Litecoin?

Of course, it’s not just LTC, the crypto market still works that way. While it is true that volatility is common and ubiquitous, other coins soaring in price will justify their skyrocketing surge.

They also fall, but only when the market or asset registers a significant event. And even then, the decline did not completely erase the price hike.

Bitcoin price movement does not mimic a Litecoin pattern | Source: TradingView

This is also the case with Bitcoin, Ethereum, Cardano, and even Polkadot. These top cryptocurrencies rise significantly, but usually lower their cap in phases.

In fact, the renowned analyst Michael van de Poppe and the renowned trader Mayne seem to highlight this themselves. Mayne really represents the hardcore LTC investors by saying:

“My love-hate relationship with this coin continues.”

This bullish and bearish pattern is also visible to investors, their holding and spending behavior. The volumes issued also show that in the last three months alone, the volatility of coins issued in Litecoin was higher than in Bitcoin throughout the year.

Litecoin volatility of the volume issued | Source: Glassnode

Hold is not a popular place for LTC, despite its average holding period of 1.6 years. Investors spend their holdings as soon as the price rises. And that can lead to a drop.

Average Litecoin holding time | Source: Intotheblock