Litecoin (LTC) price is observing the formation of a bearish pattern in the short-term timeframe that could result in a decline.
LTC holders could prevent this, but given their recent actions, the probability of this happening is less likely.
Litecoin Investors Need Motivation
Any asset’s investors tend to have an influence on the direction of the price action, and such is the case with Litecoin’s price as well. The silver to Bitcoin’s gold is currently moving within a bearish pattern, and instead of being the rescuer, the investors might end up triggering the decline.
This is because their participation in the network has been very low. Whales have been making relatively minimal transactions, one of the most important cohorts of investors, and their flows have been flat for weeks.
On average, large wallet holder flows have averaged between 100,000 and 256,000 LTC since February. Only one spike of inflows of 2.02 million LTC worth $170 million was recorded in this duration.
Read More: How To Buy Litecoin (LTC) and Everything You Need To Know
But it’s not just whales that are not making a move on the network. The participation of retail LTC holders has also been nominal. This is evident from the active addresses. The investors conducting transactions on a daily basis have dipped from 386,000 at the beginning of March to 299,000 today.
This is the lowest recorded participation since November 2023, which exhibits a lack of confidence and conviction among LTC holders. Litecoin could have a shot at recovery should this change, but the potential outcome is bearish for now.
LTC Price Prediction: Rising Wedge to Bring Litecoin Down
Litecoin’s price is presently at $84, stuck in the rising wedge, testing the lower trend line at the moment. A rising wedge is a bearish chart pattern formed by converging trendlines with higher highs and higher lows. Often, a potential breakdown from this pattern signals a reversal of the uptrend.
Should this happen to Litecoin as well, the cryptocurrency could end up falling down to test the support marked at $77.35. This support has not only been tested in the past but is also the potential target for LTC, marking an 8% decline.
Read More: Litecoin (LTC) Price Prediction 2024/2025/2030
However, if Litecoin’s price manages to keep up with the ongoing rise, it could breach the resistance marked at $86. The bearish thesis could then be invalidated. This could push the altcoin further up so that it can continue reclaiming the losses registered recently.
Disclaimer
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