Litecoin (LTC) currently trades below a pivotal resistance level, and its conversion into a support zone could propel its value towards $90. This potential rise is closely linked to investors’ current strategy of holding onto their assets rather than cashing in for immediate profits. This holding pattern not only supports the cryptocurrency’s price but also enhances its market stability.
How Are Investors Contributing?
In the wake of a significant price drop in mid-April, Litecoin has shown signs of recovery, primarily supported by LTC holders who limit their sales and actively participate in the network. Analysis shows that out of 97,000 active addresses, less than 5% are currently in a profitable position, indicating a strong holding sentiment among the majority of investors, which could be pivotal for sustaining the recovery momentum.
What Triggers the Next Profit Phase?
According to the Global Inflow/Outflow (GIOM) metrics, the LTC currently held was mostly bought at prices between $81.51 and $87.50. Surpassing this range could open the door for these holdings to become profitable. Investors seem inclined to retain their Litecoin until it exceeds these levels, anticipating higher returns, which could potentially drive the price upward.
What Happens if Resistance Becomes Support?
At the moment, Litecoin is valued at $83, just below the crucial $86 mark, representing a 50% Fibonacci retracement level. Turning this resistance into a robust support could be critical for pushing the price over $87, allowing investors to start realizing profits from their previously purchased supplies.
Key Insights for Investors
- Holding onto Litecoin could be strategically beneficial as breaking above the $86-$87 range might lead to substantial profits.
- A sustained hold by investors at current levels strengthens the market’s support base, potentially leading to a bullish market scenario.
- Immediate selling by profit-making accounts at current levels could jeopardize the recovery gains and push the price back down.
In conclusion, the ongoing investor behavior of minimizing sales, coupled with effective resistance management, could significantly influence Litecoin’s price trajectory. Should the cryptocurrency manage to transform current resistance levels into support, the pathway to $90 appears increasingly feasible.
