Litecoin (LTC) price gained 4% on Thursday as it bounced back from the recent market shake-up caused by the Fed Rate announcement. With LTC Weighted Sentiment currently hanging in the balance, can the bullish miners could sway the price outlook?
As the upcoming LTC halving event draws near, crypto miners on the Litecoin network are doubling down on their bullish positions. Do they have enough in the tank to inspire confidence amid industry-wide Fear, Uncertainty, and Doubt (FUD)?
Litecoin Miners Are Demonstrating Confidence
Against the run of play, Litecoin miners have maintained a positive stance in June 2023 so far. On-chain data shows that despite a massive 16% retracement in LTC price, rather than join the yard sale, the Miners have continued to grow their reserves
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IntoTheBlock’s Miner Reserves data aggregates the real-time balances of wallets controlled by recognized miners. The chart below shows LTC miners have increased their reserves by 250,000 between May 31 and June 16.
As seen above, the miners have demonstrated confidence despite this month’s shifty macroeconomic sentiment and regulatory concerns surrounding the crypto industry.
Notably, the miners now control more than 2.5% of the total LTC circulating supply. Hence, their bullish stance could weigh heavy on Litecoin’s price outlook in the coming days.
Weighted Sentiment Hangs in The Balance
Litecoin started June positively before the SEC’s crackdown on Binance and Coinbase triggered an abrupt retracement. However, this week, the general social sentiment surrounding the Litecoin ecosystem has remained largely neutral.
The Weighted Sentiment metric evaluates the outlook of stakeholders by comparing the number of positive mentions to the negatives.
This week, LTC Weighted Sentiment has consolidated around -0.45, within the neutral zone, according to the chart below.
This shows that the industry-wide fears have not outrightly dominated the discourse surrounding Litecoin this week. Notably, this can be attributed to LTC’s exclusion from the infamous list of cryptocurrencies designated as securities by the SEC.
On a positive note, the relatively low Weighted Sentiment often suggests there is room for more price gains before the market approaches a euphoric high.
LTC Price Prediction: A Rebound to $85 is Within Range
If the bullish miners can inspire other stakeholders to become confident, the LTC price will likely rebound toward $85. However, for the bulls to gain control, LTC must clear the initial resistance at $78.
According to IntoTheBlock’s IOMAP data below, 183,000 investors that bought 3.3 million Litecoin at the average price of $76 could cause a pullback.
But if LTC scales that resistance zone as predicted, it could reach the $85 price target.
Conversely, the bears could invalidate the positive outlook if the LTC price unexpectedly drops below the critical $70 support zone. Although, the 55,000 investors that purchased 910,000 LTC at an average of $70 will likely prevent the drop.
However, if that support level cannot hold, LTC’s price could still retrace toward $65.
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