- Litecoin (LTC) bulls are powering a recovery and have seen the digital silver retest the $70 resistance at the start of the month.
- Crypto exchange data shows that investors have lined up buying orders at current prices in anticipation of a surge.
Litecoin (LTC) is enjoying a wave of bullish sentiments as the crypto community embraces Uptober (October being characterized as a bullish month). At the start of the month, the digital asset generally regarded as the small brother to Bitcoin surged to reach $70. This was the first time the altcoin compared to digital silver reached this height since mid-August.
The LTC performance has mirrored that of Bitcoin (BTC). After initially surging to climb above $28,000, the largest cryptocurrency by market cap has slipped to trade at $27,500. At the time of press, LTC is exchanging for $64 after a 2.5 percent drop in the last 24 hours. After finding its bottom mid-last month at $58, LTC is looking for higher support above $60.
What Key On-chain Data Reveals About Litecoin (LTC)
LTC has seen its trading volumes and prices slide lower since the Litecoin halving that occurred on August 02. Historically a bullish event, the digital asset has this year struggled to reach previous heights, in part due to the wider bearish sentiments.
IntoTheBlock data shows that LTC Whale Transactions rose from 1,800 to 2,900 transactions in the last two weeks of September. The rise in whale activity is regarded as hugely a bullish sign. It is not only an indication that LTC demand is on the rise which could drive prices on a bullish path, but also, whales ensure higher market liquidity helping spot market participants to execute their trades. Unsurprisingly, whale transactions dropped from 2,900 to 2,100 on October 02 which could explain the price drop experienced during the same time. If the whale transactions (accumulation) return, this could trigger another bullish breakout.
Related: Litecoin’s Soaring Surge: Is Now the Time to Invest?
Crypto exchange data shows that Litecoin investors have placed orders to buy 234,370 LTC when the price drops 5 percent to hit $63. This will play a major role in ensuring that the $60 support holds and potentially helps the digital asset bounce back up. However, while some might be looking to break the $75 resistance, it is important to note that 230,490 LTC traders have set selling orders if the price rises by 5 percent to reach $69.
The next move for Litecoin will further be influenced by its big brother Bitcoin which usually dictates the movement of the entire market. But with the possibility of a Bitcoin spot ETF being approved over the coming months, as well as the 2024 halving, it is hard not to be bullish about Bitcoin.
