- \n
- LTC whales have started selling off their holdings.<\/em><\/li>\n
- Open interest has been on a decline in the past two weeks.<\/em><\/li>\n<\/ul>\n
On 23 January, on-chain data provider Santiment <\/span>warned<\/span><\/a> investors that Litecoin\u2019s [LTC]<\/a> price may drop in the coming days due to an increase in selling activity among whales.<\/span><\/p>\n
According to the report, the coin distribution among this cohort of LTC holders in the past few days was a profit-taking move, as demand for the altcoin had surged, thereby creating an artificial pump that the whales worried might not last.<\/span><\/p>\n
\nRead\u00a0Litecoin\u2019s [LTC] Price Prediction<\/a>\u00a02023-24<\/p>\n
\nPer data from Santiment, in the last two weeks, the count of whale addresses that held between 100 and 1,000,000 LTC tokens fell by 0.2%. Whereas, on a year-to-date basis, LTC\u2019s price rallied by 29%. At press time, the alt exchanged hands for $90.92, data from CoinMarketcap<\/a> showed.<\/span><\/p>\n
![\"\"](\"https:\/\/ambcrypto.com\/wp-content\/uploads\/2023\/01\/Litecoin-LTC-06.36.50-24-Jan-2023.png\")
<\/a><\/p>\nSource: Santiment<\/p>\n<\/div>\n
Maybe you should worry if you hold LTC<\/b><\/h3>\n
Mirroring the growth in the general cryptocurrency market in the last few weeks, LTC\u2019s Open Interest rose by 14% between 1 \u2013 12 January.\u00a0<\/span><\/p>\n
An increasing open interest in the crypto market meant that more traders were opening new positions in derivatives such as futures or options. It typically indicated an increased activity and interest in the market. It also suggested that more traders were becoming confident in the market and were looking to take advantage of potential price movements.<\/span><\/p>\n
However, as profit-taking began, and many traders closed off their LTC trade positions, the alt\u2019s Open Interest soon fell. At $337 million at press time, LTC\u2019s Open Interest fell by 13% since 12 January, data from CoinGlass<\/a> showed.\u00a0<\/span>
<\/span><\/p>\nA decline in an asset\u2019s Open Interest is often taken as a bearish signal. It indicates that traders are closing out their positions, which could signal a lack of confidence in the current direction of the market or a decrease in overall activity.<\/span><\/p>\n
![\"\"](\"https:\/\/ambcrypto.com\/wp-content\/uploads\/2023\/01\/bybt_chart-19.png\")
<\/a><\/p>\nSource: CoinGlass<\/p>\n<\/div>\n
A further assessment of LTC\u2019s price movement on a daily chart revealed the formation of a bearish divergence between the alt\u2019s price and its Chaikin Money Flow (CMF). Although still positioned above the center line, LTC\u2019s CMF had embarked on a downtrend since 13 January, while its price chased new highs.\u00a0<\/span><\/p>\n
\n - Open interest has been on a decline in the past two weeks.<\/em><\/li>\n<\/ul>\n
![\"\"](\"https:\/\/ambcrypto.com\/wp-content\/uploads\/2023\/01\/LTCUSDT_2023-01-24_06-45-29.png\")