Whales and Litecoin Miners Take Opposite Positions
Last week, the price of Litecoin could not overcome the resistance of $100 and froze in the range of $92-95. In anticipation of August 2, whale investors and miners took opposite positions.
Litecoin continues to move sideways as miners and large investors are divided on the price dynamics of the asset. We figure out what awaits LTC on the eve of halving.
Miners Accumulate Litecoin Reserves
According to the analytical platform IntoTheBlock, miners have been actively heating up LTC since June 2023. Between July 7 and July 20, they increased their holdings by 140,000 coins, bringing the total balance to 2.29 million Litecoins.
Metrics Miners Reserves tracks changes in the balance of miners’ wallets and mining pools in real time. An increase in the indicator means that they are accumulating more block rewards than they are selling.
The reduction in the available market supply by 140,000 LTC, worth about $13 million, put some upward pressure on the asset price. However, as the halving approaches, the situation may take a completely different turn. If history repeats itself, miners will start selling coins to get ahead of a possible collapse in Litecoin quotes.
Trading activity of LTC whales has halved
The approach of a halving usually causes uncertainty in the cryptocurrency market, leading to significant price volatility. Litecoin whales are gradually reducing their trading activity to reduce risks.
The chart below shows that between June 30 and July 19, the number of transactions in the amount of $100,000 or more decreased by 46%, from 1,628 to 880.
A drop in whale interest in LTC is putting systemic downward pressure on the asset price.
It is noteworthy that large investors and miners make different bets on the dynamics of LTC prices. Thus, the $90 support level could be the deciding factor for both factions in the coming weeks.
Litecoin must hold above $90 to continue rising
If LTC loses the $90 support level, miners can get rid of their holdings before the price drops further. Such a panic sale could trigger a decline to $80.
The possibility of developing such a scenario is confirmed by the coefficient MVRV. The chart below shows that the majority of investors who bought Litecoin in the last 30 days are holding 8% of the profits. If it drops to 5%, the bulls will offer some support to the asset – however, a failure will send the LTC price heading towards $80 or even lower.
In case of fixing above $100, the initiative will pass to the whales. Miners will likely start selling Litecoin as soon as the price approaches the 15% profit zone at $99. But if this resistance does not hold, the price of the asset could soar to $110.
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