Litecoin Faces Rocky Road Ahead As Miner Reserves Plummet! Here’s The Next Support For LTC Price
Litecoin’s price is presently caught in unsettled conditions, maintaining its position within a bearish zone due to lull market sentiment. Following the LTC halving event, miner reserves have been on a steady decline, signaling a preference among miners to liquidate rather than to hold or accumulate. This could act as a bearish indicator for LTC’s price, increasing the chances of a breakdown within its current consolidation range.
LTC Mining Reserves Declined 20%
The current bearish sentiment among Litecoin’s large holders appears to be intensifying the ongoing decline in LTC’s price. Santiment’s on-chain analytics reveal that crypto whales, who hold between 10,000 and 10 million LTC, made a massive selloff in August.
As of July 31, these whales held approximately 47.12 million LTC in their accounts. However, by the end of August, this number had notably decreased to around 46.7 million LTC, indicating a sale of 430,000 coins.
Additionally, miners are actively selling off their Litecoin holdings. Data from IntoTheBlock shows that the miner reserves metric has decreased by almost 20% over the past month. The figure has fallen from 2.48 million Litecoin to 1.97 million Litecoin, indicating increased selling activity by miners, which is exerting downward pressure on the asset’s price.
Adding to Litecoin’s price challenges, recent trends in the LTC derivatives markets are also leaning bearish. Data from Coinglass reveals that LTC Futures Open Interest has plummeted to its low levels since the FTX crash in November 2022. Currently, LTC’s Open Interest stands at $247 million, indicating declining interest in establishing new trading positions. Also, a decline in Open Interest serves as a notable bearish indicator, suggesting a lack of incoming capital.
What’s Next For LTC Price?
Litecoin has been hovering below the key $65 mark for several days, yet bears haven’t been able to take advantage of this situation. This implies that selling pressure fades at these lower price points, potentially trapping the LTC price in a range between $65 and $60 for an extended period. As of writing, LTC price is trading at $62.7, declining over 0.29% in the last 24 hours.
Trading below this critical level raises the likelihood of further declines. If the $55 support level gives way, the price might intensify a downward trajectory, with $47 serving as the next significant support level.
For a bullish reversal to occur, buyers will need to push the price above the EMA50 trend line. Achieving this would signal strong buying interest at lower levels and could pave the way for an attempt to reach the resistance at $70.