Despite last month’s volatility, Litecoin whales have accumulated LTC supply, laying the groundwork for a future price surge. As of press time, Litecoin (LTC) is trading 1.2% higher at $83.51, with a market capitalization of $6.22 billion.
Litecoin Whale Accumulation
Recent on-chain data research by IntoTheBlock sheds light on Litecoin’s price behaviour, which has been reasonably stable in the first half of May 2024. However, a striking trend has arisen as crypto whale investors accumulate substantial LTC this week, potentially setting themselves for a price breakout.
Over the last 30 days, Litecoin whales have amassed a significant 2,751,633 LTC, indicating a positive sentiment within this investor group. Notably, on May 10th, these addresses had a net inflow of nearly 900,000 LTC, the most significant daily accumulation since February.
Litecoin whales accumulated 2,751,633 LTC in the past 30 days.
On May 10th, these addresses had a net inflow of over 900k $LTC, the highest daily amount since February. pic.twitter.com/oDR4QG1Xjt
— IntoTheBlock (@intotheblock) May 20, 2024
This increase in whale activity shows a proactive plan to capitalize on a prospective rise in Litecoin’s value, demonstrating market optimism about the cryptocurrency’s future trajectory.
LTC Price Action: Catch-up?
Since the beginning of May 2024, Litecoin’s price has been stable, with bullish attempts to break over the $86 barrier proving ineffective. Despite good indicators, such as lower-than-expected inflation in the most recent US CPI data, investor interest in LTC has remained muted this week.
However, recent whale activity, which included new purchases totalling $80 million over the last week, suggests that Litecoin may break out towards the $100 mark in the coming days.
However, derivative market signs indicate a substantial roadblock for LTC bulls near the $86 level. According to Coinglass’ Liquidation heatmap, pessimistic traders could face significant losses of more than $5.8 million on leveraged SHORT contracts if the price of Litecoin hits $85.9.
When the price hits $85.9, immediate traders may cut their positions or implement stop-loss mechanisms, potentially increasing selling pressure on LTC immediately.
Nonetheless, if short traders hedge their positions with LONG spot purchases, Litecoin’s price is likely to break through the $85.9 resistance and approach $100, as previously predicted.
