Litecoin halving pushed whales and miners: who will win the battle for control of LTC
Date: 2023-07-22 Author: Karina Ziganova Categories: BLOCKCHAIN, IN WORLD
Last week, the price of Litecoin could not overcome the resistance of $100 and froze in the range of $92-95. In anticipation of August 2, whale investors and miners took opposite positions
Litecoin continues to move sideways, as miners and large investors are divided on the price dynamics of the asset. Let's figure out what awaits LTC on the eve of the halving.
Miners accumulate Litecoin reserves
According to the analytical platform IntoTheBlock, miners have been actively heating up LTC since June 2023. Between July 7 and July 20, they increased their holdings by 140,000 coins, bringing the total balance to 2.29 million Litecoin.
The Miners Reserves metric tracks changes in the balance of miners' wallets and mining pools in real time. An increase in the indicator means that they accumulate more block rewards than they sell.
The reduction in the available market supply by 140,000 LTC worth about $13 million put some upward pressure on the price of the asset. However, as the halving approaches, the situation may take a completely different turn. If history repeats itself, miners will start selling coins to get ahead of a possible collapse in Litecoin quotes.
Trading activity of LTC whales halved
The approach of a halving usually causes uncertainty in the cryptocurrency market, which leads to significant price volatility. Litecoin whales are gradually reducing their trading activity to reduce risks.
The graph below shows that in the period from June 30 to July 19, the number of transactions in the amount of $ 100 thousand decreased by 46% - from 1628 to 880.
The fall in whales' interest in LTC is putting systemic downward pressure on the price of the asset.
It is noteworthy that large investors and miners make different bets on LTC price dynamics. Thus, the $90 support level could be a decisive factor for both factions in the coming weeks.
Litecoin must stay above $90 to continue growing
If LTC loses the $90 support level, miners can get rid of their reserves before the price drops below. Such a panic sale could trigger a decline to $80.
The possibility of such a scenario is confirmed by the MVRV coefficient. In the chart below, you can see that the majority of investors who bought Litecoin in the last 30 days keep 8% of the profits. If it drops to 5%, the bulls will offer the asset some support - however, failure will lead to the fact that the price of LTC will head to the $80 mark or even lower.
In case of consolidation above $100, the initiative will go to whales. Miners are likely to start selling Litecoin as soon as the price approaches the 15% profit zone at $99. But if this resistance does not hold, the price of the asset could soar to $110.
