Litecoin Large Withdrawals and Their Impact on LTC Price Trends

CryptoSlate reports:
The recent surge in LTC prices may face hindrance from major shareholders selling off. On-chain data reveals strong support for LTC at $61.27, which could be crucial in overcoming resistance from profit-taking.
Despite Litecoin’s [LTC] price managing to recover some losses, it faces significant challenges. This was discovered by AMBCrypto after analyzing the net flow of large Litecoin holders.
This week, Litecoin’s price couldn’t resist the massive market sell-off trend. On July 5, the cryptocurrency plummeted to $57.55. However, in the past 24 hours, LTC changed hands at $62.50, marking a 7.05% increase.
Iconic figures in the Litecoin community are leaving the coin
Even with the price uptick, maintaining the recent surge remains uncertain for the cryptocurrency. According to IntoTheBlock’s data, as of writing, the Whale Netflow has dropped by 95.84% in the last 7 days.
In essence, this metric signifies the difference between the inflow and outflow of large holders. In this context, large holders are those addresses holding between 0.1% to 1% of the total circulating supply.
When the net flow is positive, it indicates that large investors are accumulating more than selling. Conversely, when it’s negative, it means these holders are selling more than buying. The same holds true for LTC.
If the metric remains negative, the upward trajectory of Litecoin might halt. However, if inflows surpass outflows, the value could surpass $60 in the short term and potentially approach $70.
That said, AMBCrypto believes it’s essential to assess other datasets to understand LTC’s potential direction. To that end, they evaluated the altcoin’s investor capitalization.
LTC’s price nearing the bottom, could go higher
This metric is the difference between Realized Cap and Thermocop. It determines whether the coin is hitting a top or bottom.
A surge in investor capitalization indicates the coin approaching the top of its cycle. Conversely, a low reading suggests the price nears the bottom.
Glassnode indicates that this metric is at a low point, suggesting LTC might be undervalued.
Regarding short-term prospects, AMBCrypto subsequently examined the In/Out of the Money Around Price (IOMAP) indicator. The IOMAP groups into profit and loss groups based on their average acquired price.
Hence, the metric acts as either support or resistance. The larger the cluster of addresses within a price range, the stronger the support or resistance.
As of reporting, data shows that 128,140 addresses bought 485,190 LTC at an average price of $63.39. These are the less affluent group. On the other hand, 135,090 addresses purchased 1.51 million LTC at around $61.27. These are the wealthier group.
With a significant number of addresses at lower values, this indicates strong support for Litecoin on the charts. Given this positioning, Litecoin is likely to break resistance at $63.39.
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Should this occur, LTC could reach $65.35 in a matter of days. However, if large holders of the coin continue to sell, this prediction might become invalidated.
In that case, LTC could once again drop below $60.