Previously dormant coins on the move as LTC triggers a 20% breakout

  • Litecoin (LTC) price turns bullish ahead of a 20% ascending triangle breakout.
  • Santiment’s age consumption metric rises to show previously dormant coins are on the move.
  • LTC is expecting a burst of volatility that could help it pull off a seemingly imminent rally to $75.53.
  • Litecoin price will invalidate the bullish outlook if it closes the day below the triangle resistance at $75.53.

litecoin price it is one of the few cryptocurrencies that is likely to end the week on a positive note. A higher low pattern, printed over the past seven days, paints a bullish picture for LTC. Meanwhile, Litecoin price is holding at $63.22 while patiently waiting for entry volatility broke out to close the gap at $75.53.

Previously Dormant Coins Triggered by Increased Exchange Outflows

the FTX implosion left no stone unturned in the crypto market. A liquidity crisis experienced after Alameda Research, FTX’s sister company, filed for bankruptcy saw coin base analysts portend a long crypto winter until the end of 2023.

Centralized exchanges also experienced the largest weekly Bitcoin (BTC) outflows in history. According to a CryptoCompare report, 97,805 BTC left exchanges in the seven days ending November 13.

Bitcoin Weekly Net Flows – Centralized Exchanges

Since the FTX crisis negatively affected many investors across the market, Litecoin may have faced higher outflows from centralized exchanges. On-chain data from Santiment sheds light on previously dormant LTC coins that have been on the move this week.

According to the age consumed metric below, 1.3 billion LTC tokens changed direction on November 14. The movement of large sums of previously dormant currencies is often a catalyst for volatility. Therefore, the break announced at $75.00.

Litecoin Consumed Age Metric

Litecoin Consumed Age Metric

Litecoin price is on the brink of a 20% breakout

The biggest 18 cryptocurrency It is trading at $63.12 moments after breaking the ascending triangle resistance at $63.00. The impression of a higher low pattern cemented the bulls’ hold on the price, creating optimal conditions for a move north. A 20% move above the breakout to $75.00 equals the distance between the widest points of the triangle.

LTCUSD four hour chart

LTCUSD four hour chart

The position of the Moving Average Convergence/Divergence (MACD) indicator at 1.16, above the midline, puts the price of Litecoin in the hands of the bulls. The gap formed by the 12-day EMA (in blue) above the 26-day EMA (in brown) shows that the path of least resistance is to the upside.

IntoTheBlock’s IOMAP model reinforces the strong position of the bulls in the market due to the buyer congestion zone between $57.33 and $59.20. Approximately 289,000 addresses previously purchased 8.74 million LTC in that range. Therefore, attempts by the bears to push for lower price levels below this zone are unlikely to see the light of day, as LTC holders will likely work tirelessly to protect their positions and the bullish outlook on price. of Litecoin.


IOMAP Litecoin Model

Although Litecoin price is forecasting a 20% move above the triangle pattern to $75.00, traders should be cautious and keep in mind the FTX implosion and its negative effects on the market.

Failing to close for the day above the triangle resistance at $63.00, the outlook for LTC could shift from bullish to bearish, with downside profit targets at the 200-day EMA (in blue) and areas of support lower, at $55.00 and $50.00, respectively.