The LTC cryptocurrency preserves the impulse of growth formed at the beginning of the month. On Tuesday morning, January 14th, the LTC is generally trading at $53.46.
On D1, after a convergence on the MACD, the quotations have started to rise, breaking out the resistance line of the descending channel. This signifies the beginning of a correctional trend of growth. The first aim of such growth is at 23.6% ($61.53) Fibo, later they may grow to 38.2% ($77.62) and 50.0% ($90.44). A breakout of the current minimum of $35.82 will signal the continuation of the decline with the aim at the fractal minimum of $22.25.
On H4, the quotations are testing the resistance line of the current channel of growth. The moment is supported by a Gold Cross forming on the Stochastic. These factors together mean speeding up of the uptrend. The support here is at the lower border of the channel near $47.80.
Fundamentally, LTC dynamics grow less. According to the manager of Litecoin Foundation Franklyn Richards, some 62% of the annual emission of the coins remained inactive. This makes 40 million LTC. The main part of these coins came to the investors’ wallets in autumn and winter 2018, when the price of the token was declining, and remained there.
Simultaneously, 20 million out of those 40 million tokens are known to stay in the wallets of Coinbase, the remaining part stays in other wallets, not known exactly. In Litecoin Foundation, they say that no less than 4 million LTC coins have not moved since the beginning of 2017.
The picture looks quite static and somehow explains the fact that the LTC has not found a foothold for growth before.
Earlier, the market discussed the lack of movement in the LTC. It was said that in the Litecoin network, there were 128 addresses that held 47% of the emission of the coins.
Anyway, the mass storing of coins is nothing new for the crypto market. A similar situation exists in the BTC, 1 million tokens of the cryptocurrency have been long stored in the Coinbase wallets. As it was stated earlier, 64% of the whole BTC emission has not moved for more than a year.
By Dmitriy Gurkovskiy, author at RoboForex Blog
Disclaimer: Any predictions contained herein are based on the authors’ particular opinion. This analysis shall not be treated as trading advice. RoboForex shall not be held liable for the results of the trades arising from relying upon trading recommendations and reviews contained herein.