Data shows that long-term Litecoin holders exited smartly before the halving cryptoforbs

Data shows that long-term Litecoin holders exited the asset ahead of the halving, while short-term Litecoin holders were left in a state of panic on halving day. The “halving” here refers to an event in which Litecoin block rewards are permanently halved.

Long-term Litecoin holders sold off during the pre-halving price rally

According to market intelligence platform data IntoTheBlock, long-term holders were well prepared for the “sell the news” halving event. “Long-term holders” (LTHs) generally include all investors who have held their coins for at least six months.

This group includes some of the most determined investors in the Litecoin market, who do not easily react to everything that is happening in the broader sector, as they usually hold FUD or take profit opportunities without participating in any significant sell-offs.

Given how rarely these investors move, the few times they sell can be the ones to watch out for, as they could cause problems for the market.

A way to measure whether or not LTHs are participating in a sell-off is through the “coin holding time in circulation” metric, which tells us the average amount of time that coins being transferred on the blockchain were idle prior to this movement.

When the value of this metric is high, it means that the lifetime of coins sold on the network is high, which can naturally be a sign that LTHs are active now. On the other hand, low values ​​typically indicate that short-term holders (STHs) are currently selling.

Now, here’s a chart showing the trend in Litecoin holding time over the past few months:

The value of the metric seems to have been relatively low in recent days | Source: IntoTheBlock on X

As you can see in the chart above, Litecoin’s holding time rose back in June, when the cryptocurrency’s price was experiencing a sharp rise.

During the largest of these rallies, the value of the index exceeded one year, meaning that some of the most experienced investors in the market broke their silence.

This rally occurred when the market was starting to get worried about the halving, which was only a month and a half away at that point.

The event is held every four years, the most recent of which occurred earlier this month. Contrary to what some had hoped, the event did not prove to be bullish for LTC, as the aforementioned rally did not last for long and the cryptocurrency only fell for the remainder of the run-up to the halving, until it finally fell sharply. On the day of the event itself.

It seems that experienced LTHs had already anticipated something like this would happen, so they made a wise decision to sell while the opportunity was there.

In the post-halving sell-off, the value of the index remained low, meaning that only short-term holders did panic selling after seeing that the uptrend could not return to Litecoin with the event.

Litecoin price

At the time of writing, Litecoin is trading at around $84, down 8% in the past week.

LTC has plummeted since the halving | Source: LTCUSD on TradingView