Litecoin breaks another record: the number of HODLers on the network has now exceeded 5 million cryptoforbs

On-chain data shows that Litecoin has reached another milestone with the total number of HODLers on the network now exceeding five million.

The number of long-term Litecoin holders has continued to rise recently

According to market intelligence platform data IntoTheBlock, LTC saw its number of long-term holders reach a new record this week. The company defines “long-term holders” (LTHs) or HODLers as investors who have held their coins for at least one year. Note that this maximum LTHs is different from what some other analytics platforms use, typically around five to six months.

The chart below shows how the number of addresses owned by LTH HODLers has changed over the past few years.

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

As shown in the chart above, the number of Litecoin HODLer increased significantly during this period. Since the beginning of last year, in particular, the index has seen tremendous growth.

After this sharp rise, the number of addresses holding coins for at least one year exceeded the five million mark, a new record for the cryptocurrency.

Interestingly, although the number of LTHs increased during this period, the price of the cryptocurrency mostly struggled. This shows that despite weak price action, there is growing confidence among a subset of owners who believe the asset will be a profitable investment in the long term.

This is of course a positive development for the cryptocurrency, as more LTHs means more supply locked up inside the wallets of these determined hands, which in turn means less potential for market selling.

The price of LTC has continued to struggle recently

Since Litecoin ended its decline in mid-August, its price has only moved sideways. As of writing, the cryptocurrency is trading at around $63.

Looks like the coin hasn't been moving much recently | Source: LTCUSD on TradingView

While Litecoin’s rising number of HODLers during this slide since July is a constructive sign for the asset, it may not mean much in the short term.

Where LTC price could go next from here depends on several factors, one of which could be on-chain resistance and support levels. IntoTheBlock shared that investors are focusing on different price ranges based on the cost of LTC.

Looks like the next range isn't that thick | Source: IntoTheBlock on X

The “cost basis” here refers to the price at which investors purchased their coins. In the data above, the point for the $64.9 to $69.29 range, for example, represents the percentage of Litecoin investors who bought at prices that fell within that range.

In general, when the price rises to cost basis levels with a significant amount of investor focus, there is a possibility that the asset will feel some resistance. This is because these investors, who had previously experienced losses, have entered the green zone with the rally, which may encourage them to sell and exit the market.

It appears that the range preceding the current range is not concentrated with coin holders, which could mean that Litecoin will not find much resistance if a rally towards the $69 mark occurs. However, there are notable percentages of coin holders in the next few price ranges, making further upside difficult.