Why Litecoin (LTC) Has Been Stuck in a $90-$130 Range, According to IntoTheBlock

The market intelligence platform IntoTheBlock has explained the reason why Litecoin has been stuck inside the $90 to $130 range recently.

Litecoin (LTC) has been consolidating within a tight range for the past few months, with its price remaining largely stuck between $90 to $130. A recent analysis by market intelligence platform IntoTheBlock has highlighted an interesting pattern in the Litecoin Exchange Netflow that might explain this consolidation.

The Litecoin Exchange Netflow tracks the net amount of LTC entering or exiting wallets associated with all centralized cryptocurrency exchanges. When the value of this metric is positive, it indicates that the inflows into these platforms exceed the outflows. Typically, one of the primary reasons why investors would deposit their coins into the custody of exchanges is for selling-related purposes, making this kind of trend bearish for LTC’s price.

On the other hand, the indicator being below zero suggests that holders are withdrawing a net number of tokens from the exchanges. Such a trend can be a sign that the investors are in a phase of accumulation, which can naturally have a bullish impact on the asset.

Now, let’s take a look at the chart shared by IntoTheBlock, which showcases the trend in the Litecoin Exchange Netflow over the last few months.

It would seem that deposits have ramped up when the cryptocurrency has gone up to retest the $130 upper level of its recent consolidation range, while outflows have occurred during dips. This pattern suggests that traders are capitalizing on the price swings by depositing to sell on spikes and withdrawing to buy on dips, which has helped keep LTC trading in a range between 90 and 130 for about three months.

Given this trend, the cryptocurrency might have trouble escaping out of this range, so as long as the whales continue to trade in this manner. Thus, the Exchange Netflow could be kept an eye on, to check when trader behavior finally shifts.

At the moment, Litecoin is trading quite near the upper level of the sideways channel, but the Exchange Netflow is still at a neutral level (that is, the inflows are balancing out the outflows). It only remains to be seen whether this is a sign that the whales are switching things up, or if it’s only a temporary deviation.