Litecoin breaches $200 once again; what will it take to sustain the rally
Litecoin is one of the oldest coins in the crypto space and yet it is one of the most struggling coins. While most of the altcoins marked new all-time highs during this bull run, Litecoin once again failed to do so. So, can the awaited moment occur anytime soon?
The $200 resistance has been a huge problem for the altcoin for almost 6 months now.
Ever since the drop from its May all-time high, it has been struggling to breach through it. Despite a successful breakthrough at the beginning of September, when the $232 local top was created, LTC went back under.
Then it finally closed above the said level yesterday. And even though it rose by a solid 43.14% this month, it was still 48.04% below a new ATH. However, from here on whether or not it will be able to sustain its price rise is the question.
Price indicators do not indicate any absolute price fall fortunately right now. The MACD indicator is neutral while, the Parabolic SAR seems to be indicating an active uptrend as the white dots stand under the candlesticks. But clearer signs will be visible only in the next 48 hours if or not LTC closes above $200.
Regardless of this development, holders have been pretty active this month moving their holdings, particularly mid-term holders and long-term holders. 6-12 months old coins which had been dormant for more than a month suddenly became active last week. The case was similar for 1-2 year old, 5-7 year, and 7-10 year old coins.
But most of this movement was just coins changing hands and not LTH selling, which is backed by the rising velocity and absolutely no rise on the coin days destroyed indicator showing how many old coins were sold.
However, more than the retail traders it’s the whales that have been consistently transacting this month. As transactions worth more than $100k were averaging at $2 billion, transactions more than $1 million also rose.
Thus, this is an indication that as soon as LTC appears to be making a breakthrough, it’s the older and richer cohorts that become active, and this behavior could be the cause why Litecoin may not sustain a rally long enough to keep the coin above $200.
Hopefully, if holders and tokens achieve a balance, Litecoin too could see a new all-time high in the near future.