Everything about what Litecoin (LTC) is missing and needs

Litecoin is one of the oldest cryptocurrencies on the market that has seen many ups and downs over the years. Usually this altcoin doesn’t stop following in Bitcoin’s footsteps.

The past few days have been quite difficult for Bitcoin and most other large-cap coins. LTC does not escape this scene either.

At the end of November, the LTC price was mostly around $ 220. After that, however, it began to decline. At the time of analysis, the price was only around $ 150.

The needs of the organization decrease

Aside from Bitcoin’s remarkable downtrend, there are a variety of other intertwined factors that add to selling pressures on LTC.

First, Grayscale Litecoin Trust’s share price has fallen sharply so far. It is traded on the stock exchanges with a large spread from the spot market price.

Litecoin Classic Trust (LTCN) closed $ 15 lower on Friday, according to data from Grayscale.

As is well known, stock prices depend on the fundamental laws of supply and demand. So, given the meager numbers right now, it wouldn’t be wrong to say that market participants’ interest in LTC is waning pretty quickly.

LTC and LTCN are strongly correlated with one another. Their prices reflect each other’s movements over a fairly long period of time. So if the demand for LTCN increases, the stock value will definitely increase. Accordingly, the price of LTC will also follow the same path.

However, given the lack of current demand, the possibility that the above scenario will become a reality seems very far from reality.

Source: TradingView

More, report CoinShares’ latest weekly highlights show that the total institutional outflow related to the coin was below 1 million ($ 0.9 million to be precise) last week. This underlines once again the dwindling institutional demand.

Source: CoinShares

Currently, most large-cap coins benefit greatly when the institution shows interest. Bitcoin, ETH, ADA, and SOL are good examples. In order for the LTC price to change direction, it is therefore very important for the institutes to return to the market.

The trend towards on-chain data is bleak

Investor sentiment doesn’t seem overly optimistic at the time of writing. The liveliness (ratio of the destroyed Days Coins – CDD and the created Days Coins – CDC) clearly shows this trend.

As can be seen from the attached graphic below, the vibrancy has increased so much. Whenever this metric is high, it means that the long-term HODLer is selling the asset.

With prices falling, this should come as no surprise.

The source: Glass knot

LTC’s SOPR (Output Profit Spend Ratio) has also been below 1. This ratio indicates true profit / loss and is now 0.98, indicating that the majority of sellers are losing.

So don’t expect the LTC price to skyrocket until the selling pressure subsides.

The source: Glass knot

Beyond the help of Bitcoin, LTC clearly needs institutions that have aggressive buying momentum and re-entering the market.

Only when these conditions are met will LTC be able to easily navigate north on the price chart.

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