Grayscale’s Litecoin Trust is trading at a great price and could follow the LTC price

  • Grayscale’s Litecoin Trust attracts massive capital inflows.
  • LTC / USD remains an attractive investment option for technical and on-chain analysis.
  • Litecoin bulls have no barriers on the way for $ 70 and up.

Grayscale’s Litecoin Trust is trading at a hefty premium for spot prices. According to Grayscale Invest Bot, LTCN Premium reached 2398.6%, the highest among grayscale products.

LTCN was launched in March; however, it became publicly available in August 2020. Before that, only accredited investors could participate in the trust. In the third quarter, the inflow of investments into the Litecoin Trust increased by 1,800%, clearly outpacing the rest of the Grayscale family.

This strong momentum signals that cryptocurrency investors, including hedge funds, are looking to increase their LTC exposure. According to Arcane Research, grayscale products are the only way US investors can safely participate in cryptocurrency markets.

In the absence of crypto ETFs, these publicly traded trusts are the only option for American savers to gain access to exposure to cryptocurrencies via their 401k savings.

LTC / USD shows bullish momentum

Meanwhile, at the time of writing, LTC / USD is changing hands at $ 67. The seventh largest digital asset with current market capitalization of $ 4.4 billion has gained over 6% on a daily basis and nearly l ’11, 5% in the past seven days.

LTC bottomed out at $ 41.6 on Sept. 27 and has been growing steadily ever since. The coin regained its losses during the August-September sell-off and came within a whisker of the August 17 high of $ 69.

Whales are buying Litecoin in bulk

Coin chain data supports the bullish scenario for Litecoin. According to blockchain analytics firm Santiment, the number of wallets containing 10,000 to 100,000 coins has increased from 398 to 405 since November 12. The activity of large investors often serves as a precursor to strong market movements.

Distribution of Litecoin holders

Distribution of Litecoin holders

A sudden increase in the number of LTC whales can translate into greater buying pressure and a significant increase in prices.

Meanwhile, the In and Out of the Money price data show no significant barriers above the current price. Less resistance lies on the $ 70 approach as only 22,000 addresses have previously purchased 1.6 million LTC tokens around this psychological level. Once cleared, the bulls will face no significant resistance up to $ 77.

Litecoin In / Out of the Money Around Price Data

Litecoin In / Out of the Money Around Price Data

On the negative side, more than 40,000 addresses bought LTC 1.6 million between $ 63.3 and $ 65.5; a barrier that bears may find it difficult to overcome. However, once it is crossed, a more substantial $ 60 barrier will appear. It is reinforced by over 114,000 addresses that hold 3.7 million coins.

LTC / USD has few technical barriers on the way north

From a technical standpoint, a sustainable move above $ 64 increased the upside potential and showed the recent high of $ 69. Once this barrier is removed, the price could retest the $ 70 psychological test and continue rising to $ 80. This barrier stopped the recovery in February 2020 and also reversed the trend in September 2019.

LTC / USD daily chart

LTC / USD daily chart

On the downside, if the price moves below $ 64; the sell-off can be extended to $ 60 and $ 57 psychological. This barrier served as strong support in August and also became a starting point for LTC in November. A sustainable move below this area will invalidate the immediate bullish scenario and bring more bears to the market. The next downside target is $ 50.

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