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- Whales are reportedly acquiring Litecoin (LTC) at an “aggressive rate” as they record net flows for 73 consecutive days dating back to September 14.
- Analysts predict that Litecoin could see a temporal pullback before embarking on another rally to a significant height.
Litecoin (LTC) recently reached a monthly high of $105 from its $64 low following the significant move of Bitcoin (BTC) to almost $100k. However, this rally was short-lived as a mass market liquidation forced a bearish reversal into $87 on November 26 as Litecoin declined by 17%.
Meanwhile, the asset was steadily bouncing back at press time as it surged by 2% on its daily chart and 11% on its weekly chart while trading at $97.
According to analysts, Litecoin’s impressive 31% surge last week was largely triggered by speculative demand from traders betting on the exit of Gary Gensler, the Chairman of the US Securities and Exchange Commission (SEC). Gensler’s exit could boost the chance of a possible LTC Exchange Traded Fund (ETF) approval. As we earlier reported, Gensler officially announced on X that he would be stepping down on January 20, 2025, boosting whale activities across the market.
On-Chain Activities of Litecoin
According to our analysis of IntoTheBlock data, there has been a prolonged whale accumulation trend influencing the recent upsurge of the LTC price. Specifically, whales have recorded a net flow in 73 consecutive days starting from September 14. Within the period, they have acquired a whooping 13.2 million LTC at an average price of $946.6 million.
Historically, such situations trigger positive sentiments for the following reasons:
- It signals that large holders are very optimistic about the long-term potential of the asset.
- Such purchases significantly reduce the circulating supply on exchanges, reducing selling pressure and potentially leading to a price appreciation.
According to our analysts, this trend and a possible LTC ETF approval could “send” the price to $100. However, the sharp decline from $105 has created a level of carefulness in the market. Currently, the immediate support of Litecoin is found at $90, and the next support could be spotted near the lower Bollinger Band at $85. This level reportedly coincides with the previous demand zone as well as the 20-day Simple Moving Average (SMA).
Additionally, the next resistance level is found at the upper Bollinger Band at $101. Looking into the Average Daily Range (ADR), we discovered the existence of volatility, which implies that the asset could record a temporal pullback before charging up the price curve. Meanwhile, a break below the $85 zone could see LTC falling to $68.
Litecoin’s David Schwartz Speaks on the Asset
Over the years, Litecoin has been recognized as one of the most undervalued coins as it significantly falls behind the likes of Bitcoin (BTC) and Ethereum (ETH). However, the director of Strategic Partnerships at the Litecoin Foundation, David Schwartz, believes that Litecoin is the “digital silver.” In a recent interview, Schwartz highlighted that the asset has a faster block time (2.5 minutes) compared to Bitcoin (10 minutes). He also pointed out that Litecoin has lower fees, making it ideal for payment.
Meanwhile, the Bitcoin-to-Litecoin ratio rotates around 950:1. Even so, Schwartz believes that this disparity is due to the consistent miners’ selling-offs and market speculation.
