Litecoin miners are confident
In June 2023, Litecoin miners remain positive. LTC is down 16% since the beginning of the week, but the onchain data shows that miners are not participating in the sell-off but are building up their cryptocurrency reserves.
Statistics from IntoTheBlock’s Miner Reserves show how much money is in miners’ wallets. The graph shows that in the period from May 31 to June 16 LTC miners increased their reserves by 250 000 coins.
Source: IntoTheBlock
They now control more than 2.5% of total LTC in circulation. Consequently, their bullish stance could strongly influence Litecoin price prospects in the coming days.
Sentiment on the edge
June got off to a good start for Litecoin. But then the SEC sued Binance and Coinbase, scaring the crypto-industry and causing a pullback in the market.. This week, social sentiment around the Litecoin ecosystem remained mostly neutral.
The Weighted Sentiment indicator compares the number of mentions of the cryptocurrency in positive and negative contexts, thus forming an idea of the tone of sentiment.
Source: Santiment
For the LTC, this indicator consolidates in neutral zone at -0.45. The coin was not blacklisted by the SEC and thus avoided negative discussion this week.
The relatively low level of measured sentiment often indicates that prices have the potential to rise further before the market moves into a state of euphoria and peaks.
$85 is a reachable target for LTC
If the bullish mood of miners can inspire other participants, the price of LTC will likely return to $85. On the one hand, the positioning data from IntoTheBlock suggests that there is a lot of focus near that level.
On the one hand, positioning data from IntoTheBlock suggests that 183,000 addresses are concentrated near this level, buying 3.3 million LTC at an average price of $76.6. There is a high probability that they will close some positions as soon as they come to the break-even zone or to the + gain.
Source: IntoTheBlock
What is IOMAP
The IOMAP map shows the most significant clusters of positions within a range of +\-15% of the current price.
The IOMAP map analysis provides a quantitative assessment of positioning, and it can be used as a complement to traditional support/resistance models.
But if LTC breaks this resistance zone, the path to $85 will be free.
On the other hand, a drop below the critical support area of $70 would cancel the bullish scenario and condition further decline to the next key support area at around $65.