Can LTC Break Above $80 Resistance?
- Litecoin investors continue to push the coin toward the $80 resistance level.
- Whale actions and miner engagements remains two key triggers to watch in Litecoin growth trends.
For a very long time, Litecoin (LTC) has struggled to move past the $65 resistance level even with its 12% price recovery from the two-year low of $58 it plunged to in mid-September.
The token has exhibited range-bound behavior, indicating a tug-of-war between moving toward a bear or bull trend. Entering into this week, the LTC token displayed some level of resilience and currently, the coin is trading at $64.68, after gaining 0.57% in the past 24 hours.
Crypto enthusiasts and investors are looking out for more price gain for Litecoin, underscoring the fact that many are optimistic the token may go as high as $80. While their optimism is admirable and achievable, it is important to consider some factors and metrics that might play a crucial role in achieving this feat for the peer-to-peer payment network.
Litecoin miners and whale investors’ actions are two key indicators that need to be adjusted for the token to reach $80.
Currently, both sects are taking on an opposing disposition on Litecoin and this is set to impact the price. An increase in whale transactions is generally known to be a boost to the underlying asset. It plays a pivotal role in boosting liquidity and allowing market participants to execute trade efficiently.
At the beginning of this year, Litecoin saw a mega-million buying spree which was largely attributed to big-money investors that entered the LTC market at the time. This triggered a surge in the price of LTC and the coin traded for as high as $88.9 in response.
Following the recent unimpressive price performance of Litecoin, whale investors have exhibited a fairly optimistic stance towards the token.
Opposite Disposition Between Litecoin Whale Investors and Miners
According to on-chain data, over 1,000 large transactions (which qualify as whale investors’ transactions) have been recorded on the LTC network this September. This is the highest that the network has seen since July 14th when the broad crypto market reacted to Ripple’s victory in its XRP lawsuit with the United States Securities and Exchange Commission (SEC).
A look at the LTC chart from IntoTheBlock demonstrates a negative divergence between Litecoin price and Whale transactions since mid-August. This negative momentum underscores the activities of the second key indicator for LTC price resurgence; miners.
Amidst a significant percentage of whale transactions, the emergence of bearish miners in the market with newly minted coins can trigger the price downward. LTC Miners Reserve chart shows that miners are busy selling off newly minted coins and the price of the token stagnates when these miners enter sell-off mode.
In advocating for the cryptocurrency, it should be noted that while miners hold only about 2.6% of the total LTC supply in circulation, they must reflect the same disposition as whale investors for the coin to break above $80.
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