Litecoin (LTC) Bulls Push for Recovery as Price Reaches $70
The price of Litecoin (LTC) briefly reached the $70 mark on Monday, showing signs of recovery from its mid-September low of $58. To gain insight into where LTC’s price might be headed next, it’s important to analyze key on-chain indicators.
Whale Investors Reduce Trading Activity
After hitting a new low of $58 on September 12, LTC whales stepped in to prevent further losses. However, data from IntoTheBlock shows that whale transactions have decreased significantly since then. On October 4, there were only 2,040 whale trades, down 30% from September 29. This drop in trading activity can negatively impact market liquidity and potentially keep LTC below $70.
Investors Look to Trade LTC as Bull Market Matures
The current bullish sentiment in the crypto market encourages holders to sell their LTC. The Exchange Order Books chart reveals that there are currently more sell orders for 1.6 million LTC than buy orders for 1.5 million LTC. This indicates that bearish traders are looking to sell around the current prices, which could make it difficult for LTC to break the $70 line.
Possible Reversal Below $60
If the lack of movement in Litecoin prices continues, there could be a prolonged bearish reversal below $60 in the coming weeks. The In/Out of Money Around Price data suggests that bears will face resistance around the $65 territory. However, if the whales remain neutral, LTC’s price could eventually drop below the $60 support level.
Hot Take: Litecoin Struggles to Sustain Recovery Amidst Bearish Signals
LTC’s price recovery to $70 is facing challenges as whale investors reduce their trading activity and bearish traders look to sell. With the market supply for LTC exceeding demand and the possibility of a bearish reversal below $60, it may be difficult for LTC to sustain its recovery. While other altcoins are experiencing significant gains, LTC could remain rooted below $70. Investors should closely monitor key indicators and market conditions before making any investment decisions.
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