Litecoin Bears Are Back in Control as Miners Sell Off Coins
The recent victory of Grayscale over the SEC briefly boosted the price of Litecoin (LTC), but the bears have since regained control. Currently trading at its lowest point since November 2022, LTC is facing growing selling pressure from miners. On-chain data reveals that miners have intensified their selling frenzy, depleting their reserves by 540,000 LTC in just one month. This equates to approximately $34 million worth of coins sold. The timing of this depletion suggests that the Halving event in August may have triggered the selling spree. If this trend continues, Litecoin’s price could face a bearish reversal towards $50.
Rising Transaction Volumes Indicate Growing Selling Pressure
Another concerning on-chain metric for LTC holders is the increase in transaction volumes. Despite the rapid decline in price, Litecoin’s transaction volume has consistently risen over the past two months. Between July and September, transaction volumes grew by 20%, while the price dropped by 41%. This negative divergence suggests that selling pressure outweighs buying pressure, resulting in lower prices. The continuous decline in miners’ reserves further reinforces the bearish outlook for Litecoin.
LTC Price Prediction: The $60 Support Is at Risk
The mounting bearish pressure indicates the possibility of another price reversal towards the $50 range. The In/Out of Money Around Price data supports this prediction, showing that there are significant obstacles around the $60 territory. However, if the bearish miners persist in selling, the price could drop even further. On the other hand, if the bulls manage to reclaim $75, it could invalidate the pessimistic price prediction. Ultimately, the resistance level at $65 could determine whether Litecoin’s price eventually reaches $80.
Hot Take: Bears Dominate as Selling Pressure Mounts for Litecoin (LTC)
The recent trends in Litecoin’s price, miners’ selling activity, and transaction volumes all point to a bearish outlook for LTC. The bears have regained control, and unless the selling pressure subsides, the price could continue to decline towards $50. While there is a possibility of a rebound if the $60 support holds, it remains uncertain in the face of intense selling. The bulls have a chance to reclaim control if they manage to push the price above $75, but the resistance at $65 poses a significant challenge. Overall, the current market conditions suggest a challenging road ahead for Litecoin.
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