Litecoin In Uphill Battle: Strong Resistance Might Block Recovery
June 10 2024 - 10:00PM
NEWSBTC
On-chain data suggests Litecoin potentially has a major amount of
resistance waiting just ahead, making a recovery more difficult for
LTC’s price. Litecoin Has A Large Supply Wall Waiting At Levels
Just Ahead As pointed out by X user Trader Kamikaze using data from
the market intelligence platform IntoTheBlock, a large amount of
LTC investors bought at levels that are coming ahead. Related
Reading: Bitcoin Could See Next Top At $89,200, Crypto Analyst
Suggests Below is the IntoTheBlock chart that shows the
distribution of LTC addresses based on the price at which they last
bought their coins on the network. Here, the size of the dot
correlates to the amount of cryptocurrency acquired in the
corresponding price range. As is clearly visible, the $81.64 to
$83.88 range has a large dot associated with it, meaning that a
large number of tokens were bought while the asset traded within
it. More specifically, 432,070 addresses bought around 6.67 million
LTC inside this range. This amount is worth north of $534 million
at the current exchange rate. Now, what relevance could this have
for Litecoin? In on-chain analysis, the strength of any level as
support or resistance comes down to how many coins were acquired at
said level. As such, this thick LTC range with investors could
potentially influence the cryptocurrency upon a retest. The reason
behind this theory is that the cost basis is an important level for
any holder, so they may be more prone to show some reaction when a
retest of it takes place. The larger the number of investors who
share their cost basis inside a narrow range, the stronger this
reaction would be. What kind of reaction a retest would produce
depends on whether it’s happening from above or below. Investors in
losses just before the retest (that is, it’s taking place from
below) might tend towards selling, as they could fear the price
would go down again shortly. Exiting at the break-even mark would
mean at least they can avoid realizing any losses. Related Reading:
Bitcoin & Ethereum On “Path To Acceleration,” CryptoQuant
Explains Why On the other hand, holders in the green leading up to
the retest could decide to take a further gamble, believing that
the price would go up again. Therefore, levels below the current
price can be points of support, while those above resistance. As
Litecoin has a notable supply wall at levels just ahead of the
current one, it’s possible that a retest of it could produce a
selling reaction. It now remains to be seen if this thick range
would impede LTC’s recovery, should the cryptocurrency rise to
retest it. LTC Price Litecoin is currently situated just below the
supply above wall, as its price is trading around $80. Featured
image from Dall-E, IntoTheBlock.com, chart from TradingView.com
Litecoin (COIN:LTCUSD)
Historical Stock Chart
From Jul 2024 to Aug 2024
Litecoin (COIN:LTCUSD)
Historical Stock Chart
From Aug 2023 to Aug 2024