During downtrends, patience and HODLing naturally become a dominant market dynamic. A substantial amount of Long-Term Holder coins were spent for profit into the March ATH, creating a net supply overhang.
More recently, LTHs have slowed down their profit-taking, and supply accumulated during the ATH run-up is gradually maturing into Long-Term Holder status. However, historical examples of LTH supply increasing like this show that this usually occurs during the transition towards a bear market.