2023-3-29 18:18 |
Litecoin (LTC) has slipped below $90 in another futile approach at the $100 milestone. An in-depth analysis of the underlying on-chain data reveals how Litecoin miners have recently depleted their reserves. Will LTC lose the $80 price support again?
The $100 milestone has posed major resistance to the current Litecoin bull rally.
Litecoin Miners are SellingLitecoin (LTC) leverages the unique properties of blockchain technology to offer secure and low-cost cryptocurrency payments. Proof-of-Work validators on the Litecoin network are currently depleting their reserves at an increasing rate.
According to data provider IntoTheBlock, Litecoin miners have been selling off their coins recently. Between March 11 and March 27, they offloaded nearly 1.1 million coins worth $100 million.
Litecoin (LTC) Miner Reserves. March 2023, Source: IntoTheBlockIn general, when miners sell off their tokens, it is typically seen as a bearish signal. It indicates a potential oversupply of the asset in the market. This increased selling pressure could lead to further dowsing in LTC prices in the coming weeks.
Litecoin is OverboughtSimilarly, the recent spike in Network Value to Transactions (NVT) ratio on the Litecoin network validates the bearish outlook for LTC. Santiment computes the NVT ratio by dividing a token’s market capitalization by the daily volume of transactions.
As depicted below, the NVT ratio has risen progressively, from 6.70 to 9.33 between March 11 and March 28.
Litecoin (LTC) Network Value to Transactions (NVT) ratio, March 2023. Source: SantimentThe increased NVT ratio of the Litecoin network implies an impending price downswing as the underlying asset is currently overbought. In summary, with such a high NVT ratio, if Litcecoin miners maintain the current selling trend, LTC holders can expect an extended decrease in price within the coming weeks.
LTC Price Prediction: $80 is the Next StopAccording to the Exchange Market Depth data compiled by IntoTheBlock, Litecoin is poised to drop below $80. The Exchange Market Depth chart depicts major buy and sell zones based on the limit orders currently placed by Litecoin traders on exchanges.
As seen below, LTC will likely decline until it approaches the $80 zone, where the 4.37 million buy orders can offer support. But, if that buy wall does not hold, LTC could approach $71, where exchange traders have placed orders for another 7.5 million coins.
Litecoin (LTC) Exchange Market Depth, March 2023. Source: IntoTheBlockStill, the bulls can force an upswing if Litecoin rises above the $90 zone. But to scale $90, it has to clear the resistance of 7.16 million LTC sell orders. However, if that resistance does not hold, then LTC holders can expect a further upswing to $100.
The post Litecoin Miners Are Piling on Sell-Pressure, Could This Cause LTC to Drop Below $80? appeared first on BeInCrypto.
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