The News Crypto -
- Litecoin (LTC) could reach $90+ if it flips a key resistance level into support.
- Holders are holding onto LTC instead of selling, aiding its recovery.
- Flipping $86 into support may push LTC above $87, potentially reaching $100. Failure could lead to a correction to $79.
Litecoin (LTC), the peer-to-peer cryptocurrency often referred to as the silver to Bitcoin’s gold, is currently trading under a key resistance level. However, if LTC manages to flip this level into support, it could potentially drive the price to $90 and beyond.
Interestingly, Litecoin holders are playing a crucial role in supporting this potential rally by opting to hold their supply instead of selling for profits.
Litecoin Holders Aim at Gains, Minimize Selling Pressure
As Litecoin’s price recovers from a sharp decline in mid-April, LTC holders are actively contributing to the recovery by keeping selling pressure at a minimum. This behavior is evident in the distribution of active addresses by profitability.
According to data from IntoTheBlock, less than 5% of the 97,000 active addresses are currently in profit, while about 91% are at the money, looking to secure gains.
The low percentage of profitable addresses selling their LTC holdings suggests that these holders are not too keen on taking profits at the current price levels. This reluctance to sell could potentially bolster the recovery and drive Litecoin’s price higher.
Furthermore, nearly 12.78 million LTC, worth more than $1.6 billion, is on the verge of turning profitable. The Global In/Out of the Money (GIOM) indicator reveals that this supply was bought between $81.51 and $87.50.
If Litecoin’s price manages to breach and close above the upper limit of this range, these holdings will enter the profitable territory. To achieve this, investors are likely to avoid selling their LTC, as further profits would translate to the potential for an increase in price.
LTC Price Prediction: Flipping Key Resistance into Support
At the time of writing, Litecoin’s price is trading at $83, just below the 50% Fibonacci Retracement level of $86.
If Litecoin benefits from this momentum and breaches the 61.8% Fib level at $93, known as the bull market support floor, it could initiate a rally. This level prevents a drawdown during an uptrend, and flipping it into support, bolstered by conviction among holders, could bring LTC closer to the $100 mark.
However, if the breach fails and Litecoin’s price falls back down, it could experience a correction to $79, which is in confluence with the 31.8% Fib level. Falling through this level would invalidate the bullish thesis, potentially sending LTC to $71.