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Breaking News: Cantor Fitzgerald Projects Major Growth For Hyperliquid (HYPE) In Explosive New Report

Litecoin In Uphill Battle: Strong Resistance Might Block Recovery

Keshav Verma
Keshav Verma
Last Updated: June 11, 2024 2:00 am
2 mins read
Litecoin

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On-chain data suggests Litecoin potentially has a major amount of resistance waiting just ahead, making a recovery more difficult for LTC’s price.

Litecoin Has A Large Supply Wall Waiting At Levels Just Ahead

As pointed out by X user Trader Kamikaze using data from the market intelligence platform IntoTheBlock, a large amount of LTC investors bought at levels that are coming ahead.

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Below is the IntoTheBlock chart that shows the distribution of LTC addresses based on the price at which they last bought their coins on the network.

Litecoin Cost Basis
The data for the current cost basis distribution on the LTC blockchain | Source: @trader_kamikaze on X

Here, the size of the dot correlates to the amount of cryptocurrency acquired in the corresponding price range. As is clearly visible, the $81.64 to $83.88 range has a large dot associated with it, meaning that a large number of tokens were bought while the asset traded within it.

More specifically, 432,070 addresses bought around 6.67 million LTC inside this range. This amount is worth north of $534 million at the current exchange rate.

Now, what relevance could this have for Litecoin? In on-chain analysis, the strength of any level as support or resistance comes down to how many coins were acquired at said level. As such, this thick LTC range with investors could potentially influence the cryptocurrency upon a retest.

The reason behind this theory is that the cost basis is an important level for any holder, so they may be more prone to show some reaction when a retest of it takes place. The larger the number of investors who share their cost basis inside a narrow range, the stronger this reaction would be.

What kind of reaction a retest would produce depends on whether it’s happening from above or below. Investors in losses just before the retest (that is, it’s taking place from below) might tend towards selling, as they could fear the price would go down again shortly. Exiting at the break-even mark would mean at least they can avoid realizing any losses.

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On the other hand, holders in the green leading up to the retest could decide to take a further gamble, believing that the price would go up again.

Therefore, levels below the current price can be points of support, while those above resistance. As Litecoin has a notable supply wall at levels just ahead of the current one, it’s possible that a retest of it could produce a selling reaction.

It now remains to be seen if this thick range would impede LTC’s recovery, should the cryptocurrency rise to retest it.

LTC Price

Litecoin is currently situated just below the supply above wall, as its price is trading around $80.

Litecoin Price Chart
The price of the coin appears to have seen a drop recently | Source: LTCUSD on TradingView
Featured image from Dall-E, IntoTheBlock.com, chart from TradingView.com
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Keshav Verma
Keshav Verma

Keshav Verma

Keshav is currently a senior writer at NewsBTC and has been attached to the website since June 14, 2021.

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Keshav has been writing for many years, first as a hobbyist and later as a freelancer. He has experience working in a variety of niches, even fiction at one point, but the cryptocurrency industry has been the longest he has been attached to.

In terms of official educational qualifications, Keshav holds a bachelor’s degree in Physics from one of the premier institutes of India, the University of Delhi (DU). He started the degree with an aim of eventually making a career in Physics, but the onset of COVID led to a shift in plans. The virus meant that the college classes had to be delivered in the online-mode and with it came free time for him to explore other passions.

Initially only seeking to make some beer money, Keshav unexpectedly landed clients offering real projects, after which there was no looking back. Writing was something he had always enjoyed and to be able to do it for a living was like a dream come true.

Keshav completed his Physics degree in 2022 and has been focusing on his writing career since, but that doesn’t mean his passion for Physics has ended. He eventually plans to re-enter university to obtain a masters degree in the same field, but perhaps only to satiate his own interest rather than for using it as a means to find employment..

Keshav has found blockchain and its concepts fascinating ever since he started going down the rabbit-hole back in 2020. On-chain analysis in particular has been something he likes to research more about, which is why his NewsBTC pieces tend to involve it in some form.

Being of the science background, Keshav likes if concepts are clear and consistent, so he generally explains the indicators he talks about in a bit of detail so that the readers can perhaps come out having understood and learnt something new.

As for hobbies, Keshav is super into football, anime, and videogames. He enjoys football not only as a watcher, but also as a player. For games, Keshav generally tends towards enjoying singleplayer adventures, with EA FC (formerly FIFA) being the only online game he is active in. Though, perhaps due to being ultra-focused on the game, he is today a semi-pro on the EA FC scene, regularly participating in tournaments and sometimes even taking back prize money.

Because of his enthusiasm for anime and games, he also self-learned Japanese along the way to consume some of the untranslated gems out there. The skill didn’t merely remain as just a hobby, either, as he put it to productive use during his exploration for small-time gigs at the start of COVID, fulfilling a couple of Japanese-to-English translation jobs.

Keshav is also big into fitness, with agility and acceleration-related workouts making a big part of his program due to the relevance they have in football. On top of that, he also has a more traditional strength based program for the gym, which he does to maintain an overall fitness level of his body.

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Disclaimer: The information found on NewsBTC is for educational purposes only. It does not represent the opinions of NewsBTC on whether to buy, sell or hold any investments and naturally investing carries risks. You are advised to conduct your own research before making any investment decisions. Use information provided on this website entirely at your own risk.

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Reason to trust

Strict editorial policy that focuses on accuracy, relevance, and impartiality
Created by industry experts and meticulously reviewed
The highest standards in reporting and publishing
How Our News is Made

Strict editorial policy that focuses on accuracy, relevance, and impartiality

Ad discliamer

Morbi pretium leo et nisl aliquam mollis. Quisque arcu lorem, ultricies quis pellentesque nec, ullamcorper eu odio.

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