Home Litecoin Litecoin [LTC]: What does this metric inform us about miners’ incentive to promote – AMBCrypto Information

Litecoin [LTC]: What does this metric inform us about miners’ incentive to promote – AMBCrypto Information

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Litecoin (LTC)’s bullish exercise has risen for the reason that begin of the month. It managed to get better again above $60 after ending August on a bearish notice. Quite the opposite, nonetheless, new observations appear to point that it is perhaps about to expertise one other slip beneath the $60-level.

Litecoin is likely one of the few cryptocurrencies that operates on a proof of labor consensus mechanism. Miner flows have to this point proved to be a major sentiment driver influencing value motion. Any incentive for miners to promote would thus act as a helpful indicator of potential incoming bearish stress.

The Puell a number of is likely one of the indicators which will assist determine cases the place miners are incentivized to promote. This, as a result of the metric signifies the extent of miner profitability at any given level.

Litecoin’s Puell a number of simply concluded final week with an uptick to its highest worth within the final 30 days.

Supply: Glassnode

The excessive Puell a number of for LTC indicated that miner profitability is presently excessive and this may increasingly encourage them to promote.

Litecoin’s dormancy has additionally been close to the decrease month-to-month vary, with the identical registering some exercise within the final 3 days. Apparently, this coincided with a resistance stage retest after final week’s rally.

Supply: TradingView

Litecoin’s 4-hour chart highlighted one more reason for a possible upcoming retracement. It briefly grew to become overbought after a stable bull run within the final 4 days. Moreover, the MFI indicator recommended that it has already been seeing some promote stress.

LTC’s on-chain metrics additional validated the rising promote stress expectations.

The MVRV ratio has kicked off the brand new week on a pivot, confirming that profit-taking is occurring. It additionally appeared to disclose decreased profitability for patrons coming into the market close to the latest high.

Supply: Santiment

The sharp drop within the realized cap metric is affirmation {that a} substantial quantity of shopping for stress is happening close to the latest high.


The aforementioned Litecoin-centric observations highlighted the potential for a sizeable short-term retracement in direction of the beginning of the week. Merchants must also think about opposing potential outcomes, such because the probability that the brand new week might carry forth a bullish sentiment shift. This might delay any potential draw back, giving option to the bulls.

Litecoin’s newest uptick has to this point demonstrated friction close to the $64 short-term help. This may be considered as proof that LTC may not be prepared for a breakout on the charts.

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