As reported by Coinrage, the recent surge in LTC may face obstacles from major holders selling off. On-chain data indicates strong support for LTC at $61.27, which could be crucial in overcoming resistance to fee management.
Despite Litecoin’s price managing to recover some losses, it faces significant challenges. This was uncovered by AMBCrypto after analyzing the Netflow of large Litecoin holders.
This week, Litecoin couldn’t resist the sharp downturn seen in other parts of the market. On July 5th, the cryptocurrency plummeted to $57.55. However, in the past 24 hours, LTC changed hands at $62.50, marking a 7.05% increase.
High-profile figures in the Litecoin community are parting ways with the coin.
Even with the price rise, it remains uncertain if the cryptocurrency can sustain its recent gains. In fact, according to IntoTheBlock’s data, at the time of writing, the whale net flow has dropped by 95.84% over the past 7 days.
In simple terms, this metric denotes the difference between the inflow and outflow of large holders. In this context, large holders refer to addresses holding between 0.1% and 1% of the total circulating supply.
When the net flow is positive, the funds accumulated by large investors exceed those being sold. Conversely, a negative value indicates more selling than buying by these holders – the same applies to LTC.
If the metric remains negative, the upward trend of Litecoin could halt. However, if inflows surpass outflows, the value could surpass $60 in the short term, potentially nearing $70.
That said, AMBCrypto deems it necessary to evaluate other datasets for a deeper understanding of LTC’s potential trajectory. Thus, they assessed altcoin investor capitalization.
With Litecoin’s price nearing a bottom, a potential upward movement is likely.
This metric calculates the difference between Realized Cap and Thermocop to determine whether the coin has hit a peak or bottom.
A surge in investor capitalization indicates the coin nearing the top of the cycle. Conversely, a lower reading suggests the price is nearing a bottom.
Glassnode indicates that this metric is at a low point, suggesting Litecoin may be undervalued.
Looking at short-term prospects, AMBCrypto subsequently examined the on-chain Indicators of Mean Age Consumed (IOMAP). The IOMAP groups are categorized based on their average HODL duration and whether they are in profit or loss.
Thus, the metric acts as support or resistance. The larger the cluster of addresses within a price range, the stronger the support or resistance.
As of the time of writing, data shows 128,140 addresses purchased 485,190 LTC at an average price of $63.39. This group seems to be strapped for cash. On the other hand, 135,090 addresses bought around 1.51 million LTC at approximately $61.27 per LTC. This group seems to be well-off.
Given the significant number of addresses at lower values, Litecoin shows strong support on the charts. With this positioning, Litecoin is likely to break the resistance at $63.39.
If this occurs, LTC could reach $65.35 in a matter of days. However, if large holders continue to sell off, this forecast might become invalid, potentially causing LTC to drop below $60 again.
