LTC falls back to the lower $90 as selling pressure outweighs incoming liquidity. Litecoin whales thwart the bulls after the wave of excitement since early July.
Litecoin holders who recently bought the cryptocurrency are disappointed after the latest price release. The bearish performance was contrary to expectations, especially as the halving approached.
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The general sentiment regarding the halving is that it should bolster demand for Litecoin. As such, many have been buying the cryptocurrency, anticipating a strong rally. Instead, LTC has been on a downward trajectory since early July. For perspective, the price of $90.91 at a time represented a 20% drop from its four-week high.
Source: TradingView
Litecoin’s bearish performance started after it plunged into overbought territory in early July. The price was in the mid-range of the Relative Strength Index (RSI) at the time of writing, meaning there could be some directional uncertainty. On the other hand, the Money Flow Index (MFI) was hovering just above the overbought zone at the time of writing.
The latter downside seems to have been contained after the price interacted with the 200-day moving average indicator. These observations may indicate a possible pivot point. However, such an outcome may be determined by the same factors that contributed to the bearish outcome.
Do whales contribute to selling pressure?
Whales have the greatest influence on price action. Indeed, a look at Litecoin’s on-chain stats offers some confirmation. It turns out that some whales have taken profits and contributed to selling pressure. According to the delivery distribution metric, addresses with more than 1 million LTC have heavily relieved their holdings.
Source: Sentiment
While the top whale category sold, the next largest category (with between 100,000 and 1 million LTC) bought the dip (indicated in yellow). Note that the same whales that gather represent the category with the greatest amount of circulating supply.
Will the bulls make a comeback this week?
Well, the good news is that there are some whales that scoop up more LTC. The bad news is other whales are being sold. We probably won’t see another bullish move unless there is more buying pressure than selling pressure.
LTC’s performance so far this month confirms that momentum has slanted in favor of the sellers. But why is this the case despite the impending halving? Well, sometimes big players tend to take advantage of trends. Whales that sell while others buy gain access to exit liquidity. Possibly even executing short positions to take advantage of subsequent selling pressure.
How much are 1,10,100 LTCs worth today
Despite the selling pressure, the market is still excited about the halving. That excitement can manifest in the long run, regardless of the short-term bearish outcome.
It’s ridiculous to have targets for Bitcoin from $625,000 to $1.5 million, but completely overlook litecoin. Litecoin’s network growth is now growing faster than Bitcoin’s. The price is measurably undervalued. This cycle will be all about Litecoin. pic.twitter.com/TlAVxR7oEq
— Shan Belew Ⓜ️🕸 (@MASTERBTCLTC) July 18, 2023
This post LTC is disappointing as the countdown drops to less than 15 days
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