Long-term investors are buying up Litecoin
On August 2, 2023, Litecoin experienced its third halving on the Litecoin network, after which the asset's price plummeted 46%.
However, onchain metrics hint that LTC has reached a tipping point.
Long-term holders started buying unusually large volumes of Litecoin around October 5.
The chart below shows that between October 13 and October 17, they were replenishing their balances by at least 400 thousand coins every day. On October 15, Holder's Net-In purchased 413,949 LTC, which was the highest since June 2021.
Holder's Net-Inflow metric estimates the daily increase in the number of coins in the wallets of investors who have held the asset for at least one year.
An increase in the metric tends to indicate growing confidence in the long-term price prospects of the asset.
To confirm this hypothesis, we can cite the fact that in the last three cases, a sharp jump in Holder's Net-Inflow led to an increase in Litecoin's price by at least 25%.
