Litecoin is ready to collect, but must receive crucial support
Litecoin is ready to collect, but must receive crucial support
The activity in the network indicates that higher prices are imminent.
The central theses
- litecoin has suffered a dive of 13.6% in the last 36 hours.
- Despite the significant losses, LTC looks optimistic from an on-chain perspective.
- The prices could strive for $ 290 as long as the level of support of $ 200.
Volatility has conquered the cryptocurrency market and has liquidated Litecoin positions worth over $ 8 million in the last 24 hours. Regardless of this, the on-chain metrics show that LTC is well positioned for higher highs.
Network activity goes through the ceiling
litecoin has fallen by 13.6% in the last 36 hours, but sees an undervalued from from on-chain perspective.
The latest slump has led to liquidations worth over $ 8 million. However, Network activity indicates that new money flows into digital asset, which is a sign of optimism.
Addresses in the Litecoin network with 10,000 to 100,000 tokens increased their positions last month. These major investors have added more than 720,000 LTC worth around $ 160 million to their holdings.
The increasing purchase pressure of whales goes hand in hand with a significant increase in user numbers in the network. The number of new addresses has increased by more than 79.5 % since August 7, and around 200,000 new addresses were on the Internet at the time of going to press.
Network growth is often regarded as one of the most accurate price forecasts. In general, a steady increase in the number of new addresses created on a certain blockchain leads over time at rising prices.
Litecoin has to overcome a hurdle
Another purchase pressure could drive LTC to higher maximum.
Nevertheless, the model "In/Out of the Money Around Price" (Iomap) from Intotheblock shows that Litecoin has to overcome an obstacle before it can achieve its upward potential. About 41,000 addresses previously bought 7.07 million LTC at an average price of $ 217.21.
This area may have the ability to catch part of the latest buying pressure. Owners who were under water can try to compensate for their positions, which slows down the upward trend. But if Litecoin can overcome this hurdle, it could rise to $ 290.
On the other hand, the Iomap cohorts show that Litecoin is on stable support. Almost 93,000 addresses bought around 4.63 million LTC between $ 195 and $ 202. This crucial area of interest suggests that bears could have difficulty pressing prices. In other words, the odds favor the bulls.
Kommentare (0)