LTC investors pull back after Litecoin price fails to breach key barrier
- Litecoin price was pushed below $90 after the critical resistance at $96 could not be flipped into support.
- LTC investors, which noted all-time high profitable transactions last week, have since returned to their average.
- The altcoin is currently facing a demand wall worth nearly $1 billion, whose profitability is dependent on the hype the upcoming halving can generate.
Litecoin price has had a rather rough start to the month, painting red on the charts after losing the breach of a month-and-a-half-long resistance level. The resulting impact on the investors turned out to be significantly more bearish than expected as LTC holders decided to take a step back.
Litecoin price dips lower
Litecoin price trading at $89 has been hovering around the $90 zone after observing an 8% decline over the span of a week. Similar to most of the other cryptocurrencies, the altcoin's decline was due to broader market developments, including the recent regulatory crackdown.
LTC/USD 1-day chart
However, even before the situation could develop further, LTC holders seem to be taking precautions.
At the beginning of the month, when Litecoin price hit $95 and was seemingly about to flip the critical resistance at $96 into support, the transactions on-chain went up. The total transaction volume in profit increased and hit an all-time high of 49.6 million LTC worth $4.4 billion.
Usually, such spikes are indicative of potential profit-taking, but before that could happen, investors pulled back.
 [21.07.57, 09 Jun, 2023]-638219520533749670.png)
Litecoin transactions in profit/loss
This is visible from the decline in participation on-chain. Around mid-May, addresses conducting a transaction peaked at their highest and began declining soon after. By the end of the month, the average daily active addresses in the case of LTC came down to 319k from 885k. A surge to 670k was observed soon after, but at the time of writing, participation is at 428k.
 [05.31.28, 10 Jun, 2023]-638219521035678695.png)
Litecoin active addresses
Thus, Litecoin price now needs a significantly more impactful trigger in order to rekindle its investor's interest. This is because the altcoin is facing a demand wall of 11.08 million LTC worth nearly $1 billion. For this supply to become profitable, LTC needs to sustain above the $90 mark.
Litecoin GIOM
For now, this is likely only by the hype that will be generated towards the end of Q2 and the beginning of Q3, as the altcoin would then be much closer to the upcoming Litecoin halving.
Author
Aaryamann Shrivastava
FXStreet
Aaryamann Shrivastava is a Cryptocurrency journalist and market analyst with over 1,000 articles under his name. Graduated with an Honours in Journalism, he has been part of the crypto industry for more than a year now.
