- Mining supply increased from 655,000 LTC to 645,000 LTC as the CMF hovered at 0.07.
- The Accumulation/Distribution line has increased from 60M to 67.37M since March 2024
Litecoin (LTC) miners have recently ramped up their selling pressure across the board, with on-chain data showing significant supply moves. In fact, the cryptocurrency was trading at $119.06 at press time, down 4.96% over the past 24 hours. Trading volume stood at 156.29 thousand as miners continued to adjust their positions amid market volatility.
Litecoin Supply Movement and Miner Behavior
On-chain data revealed a clear shift in Litecoin miner holdings, with supply levels dropping to around 645,000 LTC from previous highs of 655,000. This drop, while not drastic, appears to represent a consistent sales trend over the past couple of months.
Source: Santiment
The regular nature of these sell-offs, rather than hard sell-offs, suggested a calculated approach to liquidations rather than panic sales.
The supply chart notably revealed greater volatility in mid-January, indicating increased mining activity during price swings.
MVRV Analysis Reveals Market Sentiment
Litecoin’s 30-day MVRV (market value to realized value) ratio tells us a fascinating story of changes in market sentiment.
After reaching a peak of 38.57% in early December 2024, the ratio saw a sharp decline to reach its press time level of 16.12%.
Source: Santiment
Such a significant decline indicates that short-term holders who purchased in the past 30 days have seen their profit margins significantly reduced.
In fact, MVRV’s downward trajectory since December hints at cooling speculative interest, potentially signaling a shift toward a more sustainable stock valuation.
Litecoin Technical Analysis and Price Action
The Litecoin daily chart also highlighted several critical technical developments.
The 50-day moving average at 113.31 and the 200-day moving average at 80.84 have maintained a bullish cross formation – historically a positive indicator for medium-term price action.
The Accumulation/Distribution line also noted remarkable strength, climbing steadily to 67.37 million from 60 million in March 2024. This can be interpreted as a sign of sustained buying pressure, despite miner selling.
Source: TradingView
The Chaikin Money Flow (CMF) hovering around 0.07 provided additional context, indicating that despite recent price weakness, buying pressure has been slightly stronger than selling pressure. This appears to create an interesting divergence with the sales pattern of mining companies, suggesting that retail and institutional investors could absorb the selling pressure.
Additionally, trading volume patterns have highlighted significant spikes during price declines, particularly in recent weeks. The volume profile reaching 156.29k indicates active market participation during liquidation periods.
Finally, despite increasing selling pressure, price maintained support above the crucial 50-day moving average, demonstrating the underlying strength of the market.
Looking Ahead – Market Implications
The current market structure presents an intriguing scenario, in which the behavior of Litecoin miners appears disconnected from overall market sentiment. As mining companies continue their methodical selling, likely due to profit-taking or operational costs, consistent accumulation metrics suggest strong buyer interest at press time. The MVRV ratio position, while lower than recent highs, also remained in positive territory – highlighting the potential for price recovery if selling pressure eases.
The interaction between these different metrics suggests that Litecoin is in a critical phase where the behavior of miners could significantly influence price developments in the short term. The coming weeks will be crucial in determining whether the current miner sell-off represents a healthy market redistribution or the start of a more significant trend shift.
– Read Litecoin (LTC) Price Prediction 2024-25
Sustained support levels around $113, coinciding with the 50-day moving average, will be key to maintaining market structure. If these levels hold despite sustained miner sales, it could hint at strong fundamental demand for LTC at valuation time.
