Litecoin price has rebounded 12% from a two-year low of $58 in mid-September. However, it is having difficulty breaking above an important resistance. Crypto analyst Ibrahim Ajibade says that based on on-chain data and technical chart readings, the altcoin price could reach $80.
LTC whales remain positive
Litecoin whale investors remain quite optimistic despite the poor price performance in recent months. On-chain data shows that the Litecoin network recorded 1,008 Large Transactions in September 2023. This figure was the highest recorded since July 14, when crypto markets reacted positively to Ripple’s (XRP) famous victory against the US Securities and Exchange Commission (SEC).
Litecoin Whale Transactions. September 2023. Source: IntoTheBlockThe Whale Transactions metric aggregates the total value of confirmed transactions exceeding $100,000 on a given trading day. However, it excludes any amounts returned to the original address. Typically, an increase in whale transactions increases liquidity. Thus, it enables market participants to trade efficiently. Therefore, it is bullish for an altcoin price.
However, the chart above shows a negative divergence between Litecoin price and Whale transactions since mid-August. Among other possible reasons, bearish miners flooding the market with newly mined cryptocurrencies could potentially trigger a price downtrend amid record whale transactions.
Altcoin miners started selling again
As you follow from Kriptokoin.com, the Litecoin price dropped below $58 on September 11. Since then, Litecoin miners have reduced their holdings of tokens to 2 million. This is the lowest level in the last three months. However, on-chain data reveals that the LTC price increased by 12% to $65 by September 21 as miners switched to buying mode. Specifically, they accumulated 230,000 coins worth approximately $14.7 million during this period. However, the altcoin price remained calm around $65.
Litecoin Miner Reserves. September 2023. Source: IntoTheBlockMiner Reserves track changes in cumulative balances in wallet addresses connected to well-known miners and mining pools. A decrease in miners’ reserves is a bearish signal, indicating that miners are actively selling newly minted coins. As you can see above, miners have entered selling mode again. That’s why the altcoin price lost momentum in the $65 range. Miners sold another 5,000 LTC worth $320,000 in seven trading days between September 21 and September 26.
Litecoin miners currently control 2.18 million LTC. This currently accounts for 2.6% of the total circulating supply of 84 million. Therefore, for the LTC price to regain $80, miners must mirror the positive trend of whales as observed in mid-September.
LTC price prediction: The possible jump for the altcoin will be to $80!
From the on-chain perspective, Litecoin price will likely rise towards $80 if Miners and Whale investors enter a bullish trend at the same time. Global In/Out of Money Around Price (GIOM) data, which shows the entry price distribution of existing Litecoin holders, also confirms this bullish thesis. It suggests that if LTC price breaks the current resistance at $66, the bulls will ride the wave towards $75.
As you can see below, 313,420 addresses have purchased 4.04 million LTC at the maximum price of $66. If miners continue to sell, they could inadvertently force a prolonged consolidation in the $60 – $64 range. However, if Miners turn bullish, the altcoin price will likely rise above $80 in line with the forecast.
Litecoin GIOM data. September 2023. | Source: IntoTheBlockConversely, if the Litecoin price falls below $50, it is possible for the bears to take control. However, as you can see above, 187,000 wallet addresses have purchased 1.73 million LTC at a minimum price of $60.33. They will likely make frantic efforts to close their positions in order to avoid a historic return to $50. However, if the altcoin fails to hold steady at this vital support level, it is possible that it could eventually fall below $50.
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