Understanding Litecoin’s Potential Resistance Levels
Trader Kamikaze, using data from market intelligence platform IntoTheBlock, highlighted a significant amount of LTC investors who purchased coins at levels that are approaching.
- Chart displays the distribution of LTC addresses based on their last purchase price on the network
- On-chain analysis indicates the strength of a level as support or resistance is determined by the number of coins acquired at that level
- Thick LTC range with investors at upcoming levels may impact the cryptocurrency upon retest
Investors’ reaction during a retest depends on their profit or loss position:
- Investors at a loss may sell to avoid further losses if the retest occurs from below
- Investors with gains may speculate on upward movement
Levels below current price act as support, while those above act as resistance. Litecoin faces a notable supply wall just ahead, which could trigger selling if retested.
Whether this supply wall hinders LTC’s recovery remains to be seen as the cryptocurrency approaches retesting.
LTC Price Movement
Currently, Litecoin is trading around $80, positioned just below the supply wall.