Litecoin (LTC) is trading below a significant resistance level, and converting this to support could push LTC to $90. Investors might be contributing to this by preferring to hold onto their supplies instead of selling for profit.
Investor Support in Litecoin
After a sharp decline in mid-April, Litecoin’s price has recovered, and LTC holders are supporting this recovery by keeping sales to a minimum, which also draws attention with their network participation. When profitability distribution among active addresses is analyzed, it appears that less than 5% of 97,000 addresses are profiting. About 91% of active addresses are striving to make gains. This situation could indicate that profitable LTC holders are not eager to sell, potentially supporting a recovery. Additionally, approximately 12.78 million LTC, valued over $1.6 billion, are on the verge of becoming profitable.
The supply observed in the Global Inflow/Outflow (GIOM) indicator was purchased between $81.51 and $87.50, and when Litecoin’s price exceeds and closes above this upper limit, profits can be realized. To achieve this, investors will likely avoid selling their tokens as more profits could translate into potential price increases. At the time of writing, Litecoin is trading at $83, below the $86 level, which is the 50% Fibonacci retracement. Turning this level into support is crucial as it could potentially lift LTC above $87. The mentioned situation could result in the supply mentioned above becoming profitable.
Targeting $71 for Litecoin
Litecoin could benefit from this and initiate a rise if it surpasses the $93 level, which is also the 61.8% Fibonacci level known as the bull market support base, preventing declines during an uptrend. Converting this into support with the faith among its holders could bring LTC close to $100. However, if this breach fails and Litecoin’s price falls again, a correction towards $79 could occur. This price coincides with the 31.8% Fib level. Dropping below this level could invalidate the bullish thesis and send LTC to $71.
