Litecoin Investors Take Strong Profits: Highest Selling Activity in the Last 2 Months

According to the Network Realized Profit/Loss (NPL) index from the Santiment analysis platform, investors holding Litecoin (LTC) are taking the opportunity to take profit after a recent bullish trend. Selling Pressure Increases From Take Profit Events The NPL chart shows that there was a significant spike last Saturday – this is the highest take profit activity since March 24. Additionally, another sell-off occurred this Monday, although it was less intense. These two increases clearly indicate that investors are taking the opportunity to sell to realize profits, while also putting selling pressure on the market. Negative Signal From Age Consumed Indicator In addition to NPL, Santiment's Age Consumed indicator also gives a rather negative signal. This indicator measures the amount of "dormant" tokens – that is, coins that have been inactive in wallets for a long time – that are suddenly activated and moved. History shows that when this index skyrockets, the price of LTC tends to decline afterward due to a large amount of tokens being transferred to exchanges for sale, thereby increasing supply pressure. 🔍 Litecoin Price Forecast: The Emergence of a "Dead-cat Bounce" Situation The current technical analysis shows that the price of LTC has broken and closed below the short-term bullish trend line since the beginning of April, while also falling below the 200-day exponential moving average (200 EMA) at the level of $93.70 on Thursday. The next day, the price dropped sharply by 8.12%. However, in the next three days, LTC experienced a slight recovery, and at the time this article was written on Tuesday, the price was fluctuating around $89.30. Important Resistance Level & Dead-cat Bounce Scenario Given the current situation, LTC is likely to form a "dead-cat bounce" – a short recovery in a larger downtrend. If it occurs, the price may return to test the strong resistance area around $93.70 to $95.80 – which coincides with the 200 EMA line and corresponds to the 50% Fibonacci retracement level. This is an important reversal zone and may attract investors waiting for the opportunity to open a short position (short). The ideal stop-loss (stop-loss) level should be placed above the weekly resistance area at $96.30. Target Price Decrease If Rejected If LTC cannot break through the aforementioned resistance zone and gets rejected, the price may turn down again to the bottom from last weekend at $83.31. If it continues to breach this level, the downtrend may extend down to the next important support level at $77.19 – corresponding to the latest weekly low. In summary, the current technical indicators and investor behavior indicate that selling pressure on Litecoin is increasing. Taking profit after the bullish trend, along with negative signals from on-chain data, may push LTC into a deeper correction cycle in the near future.