Litecoin’s (LTC) price failed to break above the $70 resistance last week. However, two vital on-chain indicators keep the bull’s hopes of LTC price reclaiming the $80 territory alive.
Litecoin miners’ trading activity has influenced the LTC price downtrend that followed the August 2 halving event. Recent data readings show that this could soon take a positive spin.
Litecoin Miners are $10M Away From Recouping Pre-Halving Balances
In the month that followed the August 2 Litecoin halving event, the miners sold off 500,000 LTC (~20% of their 2.55 million LTC holdings on August 3) as the overall sentiment surrounding the ecosystem turned negative.
This resulted in a 31% decline in LTC price from $90 to $62 between August 2 and September 6.
But since their balances dropped to 2.05 million on September 6, the IntoTheBlock chart below shows that the miners have started accumulating again. As of October 31, they now hold 2.41 million LTC in their cumulative balances.
With another 140,000 LTC (~$9.7 million), the miners can grow their balances to the 2.55 million LTC they held before the halving.
Typically, a persistent increase in miners’ reserves is a bullish signal. It means that the Litecoin node validators are HODLing out for future gains rather than liquidating their block rewards in the short term.
If it persists in the coming weeks, the reduction in market supply and put upward pressure on Litecoin price as the bulls target $80.
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Trading Volume is at Peak Levels for H2 2023
Litecoin had a fairly positive price performance in the first half of the year before the post-halving crash set in; the rising trading volumes in LTC markets is a second vital indicator pointing toward a potential replication of that positive H1 performance.
As depicted below, Litecoin trading volumes climbed to 17.8 million LTC on October 27. Notable, this is the highest in H2 2023 so far.
In fact, the last Litecoin daily trading volume exceeded 17.8 million LTC on June 20, when it reached 19.5 million LTC. The chart below shows that the LTC price rapidly climbed 41% to hit $110 following the next two weeks.
Transaction volume refers to the total number of trades conducted within a specific time frame for a particular crypto asset. It measures the level of activity or participation in the market and can provide valuable insights into market dynamics.
Transaction volume can be considered bullish for the price when it significantly increases, especially during an overall market uptrend.
The timing of the current increase in Litecoin’s Transaction volume can be interpreted as a confirmation of the bullish reversal pattern. Considering the historical positive impact of a similar increase in June, LTC holders can anticipate a further upswing toward $80.
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LTC Price Prediction: Road to $80?
From an on-chain standpoint, the Miners’ accumulation and rising transaction volumes are two vital conditions that could propel Litecoin’s price toward $80. The Global
The Global In/Out of the Money data, which is an on-chain representation of LTC holders’s historical buying trends, also confirms this prediction. It shows that the $75 territory is the most significant resistance blocking the $80 territory.
As depicted below, 531,100 addresses had bought 6.6 million LTC at an average price of $74.58. If they opt to book early profits, this could set off an instant retracement.
But if the miners keep buying and trading activity continues to rise, the Litecoin price rally could reach $80 as predicted.
Alternatively, the bears could invalidate that prediction if the LTC price dips below the $60 mark. But as observed last week, the bulls will likely mount a strong support buy-wall around $65.
The chart above shows that 1.03 million addresses currently hold 8.96 million LTCs bought at the average price of $64. If they HODL, they will likely prevent a major LTC price reversal.
But if that support level caves in, it could trigger a prolonged Litecoin price decline toward $55.