The market market platform Intatheblock explained why Litecoin was stuck in the $ 90 at $ 130 range recently.
Litecoin Exchange Netflow recently followed an interesting scheme
In a new post on X, the analysis company IITHEBLOCK has discussed a model that the Litecoin Netflow exchange showed during the recent phase of consolidating the price of the activity.
The “Exchange Netflow” here refers to an indicator on chain that keeps trace of the net amount of the cryptocurrency that is entering or leaving the portfolios associated with all centralized exchanges.
When the value of this metric is positive, it means that the affluent for these platforms exceed the deceased. In general, one of the main reasons why investors would deposit their coins in the custody of exchanges is for sales purposes, so this type of trend can be a bearish sign for the price of LTC.
On the other hand, the zero indicator suggests that the owners are withdrawing a net number of tokens from exchanges. This trend can be a sign that investors are in a storage phase, which can naturally have a bullish impact on the resource.
Now, here is the graphic designer shared by Intatheblock, which shows the tendency in the Litecoin Netflow exchange in recent months:
As is visible in the graph above, the LTC Netflow exchange has shown an interesting model in the last two months. It would seem that deposits have increased when the cryptocurrency has increased to repeat the test of the higher level of $ 130 of the recent consolidation interval, while during the dams they occurred.
“The data suggest that Litecoin traders are capitalizing on prices of prices, increasing the withdrawals and deposits to be sold on peaks and buying on tops”, observes the analysis company. “This model contributed to keeping LTC trading in an interval between 90 and 130 for about three months.”
Given this trend, it is possible that the cryptocurrency has difficulty escaping this interval, therefore as long as the whales continue to trade in this way. Therefore, Exchange’s Netflow could be kept an eye on, to verify when the trader’s behavior finally moves.
At the moment, Litecoin is exchanging enough close to the upper level of the side canal, but Exchange’s Netflow is still at a neutral level (i.e. the affluent are balancing the deceased). It remains only to see if this is a sign that whales are changing things or if it is only a temporary deviation.
LTC price
Most of the cryptocurrency sector discovered that the past day is red, but Litecoin showed divergence since its price increased by almost 3%, reaching the sign of $ 127.