Litecoin (LTC) holders are actively engaged to support the coin’s potential recovery, although minimal sales activity has been observed. Analysis of active addresses suggests that the majority are at break-even levels, prioritizing securing potential profits over selling.
Amid the broader crypto market decline, Litecoin (LTC) price is also facing downward pressure, falling 4.75% in the past 24 hours and falling below $80 at the time of writing.
After facing a sharp decline in April earlier this month, Litecoin price has made some recovery to above $90 last week. LTC holders are actively contributing to the coin’s recovery by maintaining minimal sales activity, as evidenced by their engagement on the network.
An analysis of active addresses broken down by revenue reveals that less than 5% of approximately 97,000 addresses are currently profitable. The majority (approximately 91%) are hovering around the break-even point, indicating a desire to secure potential profits rather than sell.
This trend suggests that LTC holders with profitable positions are reluctant to sell, potentially strengthening the outlook for a recovery. Additionally, about 12.78 million LTC, worth more than $1.6 billion, is on the verge of profit. According to the Global In/Out of the Money (GIOM) indicator, this supply is being acquired at prices ranging from $81.51 to $87.50, with profits to be made if Litecoin price maintains its close above the upper threshold. That’s it.
Provided by: Into the Block
In anticipation of this scenario, investors appear to be inclined to continue holding on to their assets, as increased profits could contribute to higher LTC prices.
Litecoin price (LTC) recovery is yet to come
Currently, Litecoin (LTC) is under selling pressure with its price below $80. Currently, Litecoin price is below the 50% Fibonacci retracement level marked at $86. Establishing this level as support could pave the way for LTC to break above $87, leading to the aforementioned supply profitability.
A potential upside for Litecoin could come from a breakout of the $61.8% Fib level at $93. This level is often called the bull market support floor and acts as a barrier to a downtrend during an uptrend. Reinforced by the strong belief of holders and consolidating this level as support, LTC could approach the $100 level.
As reported by Crypto News Flash, a significant portion of traders are expressing considerable confidence in Litecoin’s rise, as evidenced by the considerable leverage utilized in the derivatives market. Coinglass data reveals that bullish sentiment prevails, with long leveraged positions significantly outpacing short positions in value. This optimistic outlook has put a lot of pressure on short sellers, who will face significant losses if prices continue to rise.
Analysts predict that if LTC rises to $96 with a relatively modest 10% price increase, short sellers could liquidate positions totaling $16 million. In contrast, bullish traders have accumulated leveraged long positions of over $16 million at current price levels.
