Litecoin Technical Analysis: LTC Bulls Have Run Out Of Steam Near $175 Resistance
Daily Litecoin LTC Price Analysis
- Litecoin price has flashed a buy signal in the TD sequential detector in the daily chart.
- LTC dropped down from the 200-bar SMA, reversing the 50-bar SMA from support to resistance.
The Litecoin price has been trending between a narrow $15 channel (180 and $165) between February 24 and February 28. Currently, LTC is trending down $172, now let’s take a closer look with technical analysis.
Litecoin Faces Bearish Correction After A Temporary Uptick
Litecoin price has flashed a buy signal in the form of a red-nine candlestick in the TD sequential indicator. LTC jumped to $175 and then dropped to $172. The relative strength index (RSI) is hovering horizontally at 45, which shows that LTC still has room to grow before it gets overvalued.
Image: LTC/USD daily
On the downside, the immediate support that the Litecoin price feels is at the 50-day SMA ($167). Previously, 47,500 addresses had purchased 848,500 LTC tokens at this level. A further break will take LTC down to the $150 support wall.
Looking at the 4-hour Litecoin price chart, we can see that LTC failed at the 200-bar SMA and dropped down. During this fall, it managed to flip the 50-bar SMA from support to resistance.
Image: LTC/USD 4-hour
80% of All Litecoin Mined In February Now Belongs To Grayscale
Grayscale Investments bought the majority of Litecoin mined last month, according to Bybt. Grayscale now holds over 1.44 million Litecoin ($248.33 million), making it the company’s third-largest crypto holding after Bitcoin and Ethereum.
Grayscale is one of few service providers in the US that allows accredited and institutional investors to buy digital assets. It offers more than nine crypto-based “trusts,” which are available both as a subscription or as a tradable share on the over-the-counter (OTC) market.
According to current figures, miners earn over 12.5 Litecoin as a mining “reward.” Over 300 Litecoin are mined per hour and 7,200 Litecoin are mined per day, meaning February saw over 201,600 Litecoin mined in 28 days. With the 174,900 Litecoin going into Grayscale’s Litecoin Trust (LTCN), the figures mean that the fund purchased nearly 80% of all new Litecoin mined in the past month.
“In the past month @Grayscale Trust has purchased over 174,000 Litecoin. This is approx 80% of all Litecoin mined last month…”
Meanwhile, Grayscale’s “premium” shows Litecoin demand is unmatched. The firm outlined that each LTCN share contains just $15.70 worth of the cryptocurrency, while the share itself trades at $304.99 on the open market. This represents a premium of over 1,842.61% that investors are paying to gain exposure to Litecoin through a regulated and secure fund without the hassle of managing private keys.
Litecoin Price Is Expected To Reach These Levels
The Litecoin price will likely hover between the $172 and $167 price levels.