Analytics firm IntoTheBlock has revealed why Litecoin (LTC) remains trapped in a $90-$130 price range. The pattern stems from systematic trader behavior on exchanges.
Understanding the Exchange Netflow Pattern
Exchange Netflow data shows a clear trading pattern. Traders deposit LTC when prices approach $130. They withdraw when prices dip toward $90. This creates a self-reinforcing range.
The metric measures cryptocurrency movement in and out of exchanges. Positive netflow often signals selling pressure. Negative netflow typically indicates accumulation.
Market Impact Analysis
This trading behavior has several implications:
- Range-bound price action may continue until the pattern breaks
- Large traders actively trade the range boundaries
- Breaking above $130 needs significant buying pressure
- The $90 level serves as strong support
Current Market Conditions
Litecoin shows strength amid market weakness. It gained 3% while other cryptocurrencies declined. The price sits near $127, testing the range’s upper limit.
The neutral Exchange Netflow suggests a potential shift in trader behavior. This could lead to a range breakout if the pattern changes.
Trading Strategy Considerations
Traders might consider:
- Range trading between $90-$130
- Watching Exchange Netflow for pattern changes
- Setting stops outside the range
- Monitoring whale activity at range boundaries
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Tags: Litecoin, Cryptocurrency Trading, Market Analysis, Exchange Netflow, Technical Analysis
Source: NewsBTC