Litecoin (LTC) Price Nears Rebound: Miners’ Bullish Sentiment?

2023/06/09 20:00

Litecoin (LTC) price has recovered 3% after turbulence in the global crypto markets sent LTC crashing by 10% on Monday. On-chain data shows that the confidence shown by Litecoin Miners has been pivotal to the early price rebound. Will the bulls now target a rebound toward $95? 

Since the start of June, there has been a positive change in sentiment among the Litecoin Miners. Despite the recent industry-wide contraction, they kept stacking up their reserves. Will other LTC holders take the cue to enter bullish positions in the coming days?

Despite Market Volatility, Litecoin Miners Keep Stacking

Despite the heightened volatility and negative sentiment that spread across the crypto markets this week, Litecoin Miners held firm. 

On-chain Miner Reserves data monitors the real-time balances in wallets associated with recognized miners and mining pools. According to the blockchain analytics portal IntoTheBlock, Litecoin Miners have increased their reserves this week. 

Specifically, between June 3 and June 8, they increased their holdings by 100,000 LTC.

Litecoin (LTC) Price Rebound, June 2023 - Miner ReservesLitecoin (LTC) Price Rebound, June 2023 – Miner Reserves. Source: IntoTheBlock

Evidently, the data presented above implies that in spite of the recent sell-off that saw the LTC price drop below $85 this week, the miners have remained confident.

It is also important to note that the next Litecoin halving event is on the horizon. Given that new LTC price all-time highs have followed the last two Litecoin halvings, the miners will likely keep stacking up their reserves as the event draws nearer. 

Litecoin Has Witnessed a Resurgence in Network Activity 

After the blip on Monday, transactional activity on the Litecoin network is again trending upward. The Active Addresses (7d) metric tracks transactional activity by aggregating the number of unique wallet addresses that interacted on the network over a seven-day period. 

According to the Santiment chart below, LTC daily active addresses dipped toward 2.11 million addresses on Monday, June 5. But, by the close of June 8, it has recovered by 20%, rising to 2.53 million.

Litecoin (LTC) Price Rebound, June 2023 - Active Addresses (7d)Litecoin (LTC) Price Rebound, June 2023 – Active Addresses (7d). Source: Santiment

When Active Addresses increases, it signals that more users are conducting transactions on the network. This ultimately attracts demand for the underlying asset and sparks an increase in economic value across the ecosystem. 

If Litecoin network participants continue to increase in the coming days, the resulting demand could trigger price gains. 

In summary, the bullish conviction among Litecoin Miners and the resurgence in transactional activity are pivotal factors that could propel LTC price into an early rebound. 

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LTC Price Prediction: Potential Rebound Toward $95

As the SEC FUD clears, the bullish factors will likely push LTC to reclaim the $95 milestone price. But, according to IntoTheBlock’s In/Out of the Money Price chart below, LTC must beat the $90 resistance before holders can be confident of the impending rebound.

At that zone, 610,000 investors that purchased 6.95 million LTC at the minimum price of $90 could slow the rally. But if the bullish outlook is actualized, the LTC price will likely rebound above $95. 

Litecoin (LTC) Price Prediction - June 2023. IOMAP dataLitecoin (LTC) Price Prediction – June 2023. IOMAP data. Source: IntoTheBlock

Still, Litecoin could slip into a bearish trend if the price drops unexpectedly below the $82 support zone. But, the buy-wall mounted by 250,000 investors that bought 3.75 million LTC at the minimum price of $82 will likely prevent this. 

Although unlikely, if that support zone cannot hold, LTC’s price could drop to $75.

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Disclaimer: The content above is only the author's opinion which does not represent any position of Followin, and is not intended as, and shall not be understood or construed as, investment advice from Followin.
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