According to market analytics platform IntoTheBlock, Litecoin has been stuck in a trading range of $90 to $130 for some time now. The main reason is the trading patterns on exchanges, especially Litecoin's Netflow index.

Netflow Model Affects LTC Price

The Exchange Netflow index shows the difference between the inflow and outflow of money from exchanges. When this index is positive, it means that the amount of LTC deposited into the exchange is more than the amount of LTC withdrawn, which is often associated with selling pressure, causing a negative impact on the price. Conversely, when this index is negative, it shows that investors are withdrawing LTC from the exchange, which can be a sign of accumulation, creating momentum for price increases.

Over the past few months, Litecoin's Netflow model has shown a notable trend. As LTC approaches the $130 resistance zone, deposits to the exchange increase, indicating that many investors are taking profits. Conversely, as the price drops to a lower level, withdrawals increase, signaling buying activity.

Whales Maintain Price Range

Data from IntoTheBlock shows that traders are taking advantage of price volatility to implement a buy low, sell high strategy. This has helped keep Litecoin in the $90-130 range for the past three months.

As long as whales continue to trade in this pattern, LTC will have a hard time breaking out of its current price range. Therefore, monitoring the Exchange Netflow metric will be an important factor in determining whether this trend will continue.

Litecoin Price Outlook

Currently, LTC is trading in the upper part of its sideways range, around $127, with the Netflow metric at a neutral level. This shows that the inflows and outflows are balanced, making the price trend unpredictable. If large investors change their strategies, Litecoin could soon break out of this range.