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- Litecoin (LTC) holders are actively involved in supporting the coin’s potential recovery, with minimal selling activity observed.
- Analysis of active addresses indicates that the majority are at breakeven levels, suggesting a preference for securing potential gains rather than selling.
Amid the sell-off in the broader cryptocurrency market, the Litecoin (LTC) price is also facing a downward pressure losing 4.75% in the last 24 hours slipping under $80 as of press time.
Over the last week, the Litecoin price staged some recovery moving past $90, after facing a sharp decline earlier this month in April. LTC holders are actively contributing to the coin’s recovery by maintaining minimal selling activity, as evidenced by their engagement on the network.
Analysis of active addresses categorized by profitability reveals that less than 5% of approximately 97,000 addresses are currently in profit. The majority, around 91%, are hovering around breakeven, indicating a desire to secure potential gains rather than sell.
This trend suggests that LTC holders with profitable positions are reluctant to sell, potentially strengthening the prospects of a recovery. Moreover, nearly 12.78 million LTC, valued at over $1.6 billion, is on the brink of becoming profitable. According to the Global In/Out of the Money (GIOM) indicator, this supply was acquired at prices ranging from $81.51 to $87.50 and would yield profits once Litecoin’s price surpasses and sustains a close above the upper threshold.
In anticipation of this scenario, investors seem inclined to hold onto their assets, as increased profits could contribute to a rise in LTC’s price.
Litecoin Price (LTC) Recovery Ahead
Currently, Litecoin (LTC) has been facing selling pressure with its price slipping under $80. Currently, the Litecoin price is situated below the 50% Fibonacci Retracement level, marked at $86. Establishing this level as a support could pave the way for LTC to surpass $87, leading to the profitability of previously mentioned supply.
A potential rally for Litecoin might ensue upon breaking through the 61.8% Fib level at $93. This level, often referred to as the bull market support floor, acts as a barrier against downtrends during uptrends. Solidifying this level as support, reinforced by strong conviction among holders, could propel LTC closer to the $100 mark.
As reported by Crypto News Flash, a notable portion of traders are displaying considerable confidence in Litecoin’s upward movement, evident from the substantial leverage employed in the derivatives market. Coinglass data reveals a prevailing bullish sentiment, with the value of long-leveraged positions significantly outweighing shorts. This optimistic outlook is putting considerable pressure on short sellers, who face substantial losses should the price continue its ascent.
According to analysts’ projections, a relatively modest 10% price surge, propelling LTC to $96, might prompt short sellers to liquidate positions totaling $16 million. In contrast, bullish traders have amassed leveraged long positions surpassing $16 million at the existing price level.