This Is Why Litecoin (LTC) Investors Hold the Key to a Potential Correction
A bearish pattern is forming in the short-term for Litecoin (LTC), indicating a possible decline in price. However, it is up to LTC investors to prevent this correction from happening.
Investors play a significant role in influencing the direction of an asset’s price, including Litecoin. Currently, Litecoin is moving within a bearish pattern, and the actions of investors could trigger a further decline.
Unfortunately, recent data suggests that investor participation in the network has been low. Notably, large wallet holders, known as whales, have been making minimal transactions, with their flows remaining flat for weeks. The average flows have ranged between 100,000 and 256,000 LTC, with only one spike of inflows recorded.
Furthermore, retail LTC holders’ participation has also been nominal, as indicated by the decrease in active addresses. The number of investors conducting transactions on a daily basis has decreased, showing a lack of confidence and conviction among LTC holders.
Unless there is a change in investor sentiment and increased participation, Litecoin may struggle to recover in the short term. The current outlook is bearish.
Litecoin’s price is currently testing the lower trend line of a rising wedge pattern, which is often a bearish signal. If Litecoin breaks down from this pattern, it could fall to test the support at $77.35, marking an 8% decline.
However, if Litecoin manages to sustain its upward momentum and break through the resistance at $86, the bearish thesis could be invalidated. This could lead to further gains for the altcoin and a reversal of recent losses.