A major development just happened for Litecoin (LTC) which might be a signal to trigger the altcoin rally ahead. Its recent price action shows a sign of whale accumulation despite the recent volatility faced by the market.
Litecoin whales making big moves
As per the data shared by IntotheBlock, Litecoin whales have been actively accumulating LTC, enjoying the recent drop-down in its prices. Over the last 30 days, crypto whales have accumulated around 2,751,633 LTC (Approx worth $229 million). However, On May 10th alone, these addresses had a net inflow of over 900k LTC. This has been recorded as the highest daily accumulation since February.
May 15th saw a Netflow of more than of more than 400k LTC. It is important to note that these whale wallets recorded a continuous netflow of around 200K Litecoin from April 30 to May 4.
The pattern of accumulation indicates a bullish sentiment among large investors. It also suggests that the whales are positioning themselves for a potential price breakout.
Data shows that Litecoin price is up by around 15% on the year to date (YTD) basis. LTC has managed to gain more than 18% in the last 90 days. Its price jumped marginally over the last 24 hours showing doubt in the market.
Where will it can go next?
Litecoin is trading at an average price of $83.25, at the press time. It is still down by 79% from its all time high (ATH) of $412 recorded on Mat 10, 2021. Its 24 hour trading volume is up by 14% to stand at $264 million. LTC is still holding a market cap of $6.2 billion.
Since the beginning of May 2024, Litecoin has struggled to break past the $86 resistance level. Positive macroeconomic indicators, such as lower-than-expected US inflation, have not yet translated into high investor interest in LTC.
However, the recent whale accumulation, involving $80 million in purchases over the past week, points to a possible breakout towards $100. Derivative market signals highlight significant resistance near $86. Data from Coinglass’ Liquidation heatmap shows bearish traders could face over $5.8 million in losses on leveraged short contracts if LTC exceeds $85.9.
Short traders might reduce positions or use stop-loss mechanisms as the price nears $85.9, increasing selling pressure. Conversely, hedging with long spot purchases could help LTC break through the $85.9 resistance, making $100 a more achievable target.
