LTC on-chain analysis shows that miners have recently reduced their LTC holdings. Could this cause LTC to lose the $80 support level once again?
The $100 mark has created a major drag on the current Litecoin bull run.
Litecoin miners are selling
Litecoin (LTC) leverages the unique properties of blockchain technology to provide cryptocurrency payments securely and at a low cost. Miners on the Litecoin network are currently reducing their reserves of LTC tokens at an increasing rate.
LTC on-chain analysis shows that Litecoin miners have recently sold off most of their LTC holdings. From March 11 to March 27, the group sold nearly 1.1 million tokens worth $100 million.
Accordingly, miners selling their tokens is often seen as a bearish signal. It shows the possibility of an oversupply of the asset in the market. This increased selling pressure could cause the LTC price to drop in the coming weeks.
Litecoin is at overbought level
Similarly, the Network Value to Transactions (NVT) indicator recent spike on the Litecoin network confirms a bearish possibility for LTC. Santiment calculates the NVT ratio by dividing the coin's market capitalization by its daily trading volume. As described below, the NVT rate gradually increased, from 6.70 to 9.33 between March 11 and March 28.
The Litecoin network's increased NVT ratio signals an imminent price drop as the underlying asset is currently overbought. In conclusion, with such a high NVT ratio, if Litcecoin miners maintain the current selling bias, LTC holders can expect an extended pullback in the coming weeks.
LTC Price Prediction: 80 USD next stop?
According to Exchange Market Depth data compiled by IntoTheBlock, Litecoin will most likely drop below $80. This indicator depicts the main buy and sell zones based on limit orders being placed by Litecoin traders on exchanges.
As seen below, LTC is likely to decline until it approaches the $80 region, where 4.37 million buy orders could provide support. However, if that buy wall fails to hold, LTC could fall further towards $71, where traders are placing buy orders for 7.5 million LTC.
However, the trend could reverse if Litecoin rises above the $90 region. To do this, LTC has to break through a resistance level where there are 7.16 million pending sell orders. If successful, the LTC price is likely to rise to $100.
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