Litecoin Whale Accumulation Surges, LTC Price Breakout Above $100 Imminent?
Despite the volatility over the last month, Litecoin whales have been scooping up the LTC supply thereby forming a solid basis for its price rally ahead. As of press time, the Litecoin (LTC) price is trading 1.2% up at $83.51 with a market cap of $6.22 billion.
Litecoin Whale Accumulation
Recent on-chain data analysis by IntoTheBlock sheds light on Litecoin’s price performance, which has remained relatively stagnant during the first half of May 2024. However, a notable trend has emerged as crypto whale investors engage in significant LTC accumulation this week, potentially positioning themselves ahead of an anticipated price breakout.
Over the past 30 days, Litecoin whales have accumulated a substantial 2,751,633 LTC, signaling a bullish sentiment within this investor segment. Notably, on May 10th, these addresses witnessed a net inflow of over 900k LTC, marking the highest 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 surge in whale activity suggests a proactive strategy to capitalize on a potential uptick in Litecoin’s value, indicating growing optimism within the market regarding the cryptocurrency’s future trajectory.
LTC Price Action to Catch-up?
Since the beginning of May 2024, Litecoin’s price has remained stagnant, with bullish attempts to surpass the $86 resistance proving futile. Despite positive indicators such as lower-than-expected inflation in the recent US CPI data, investor interest in LTC has remained tepid this week.
However, recent whale activity, involving fresh purchases totaling $80 million over the past week, suggests a potential breakout for Litecoin towards the $100 mark in the coming days.
Yet, derivative market signals indicate a significant hurdle for LTC bulls near the $86 level. Data from Coinglass’ Liquidation heatmap reveals that bearish traders could face substantial losses, exceeding $5.8 million on leveraged SHORT contracts if Litecoin’s price exceeds $85.9.
In response, Short traders may opt to reduce their positions or implement stop-loss mechanisms as the price approaches $85.9, potentially intensifying selling pressure on LTC in the short term.
Nevertheless, if short traders hedge their positions with LONG spot purchases, Litecoin’s price could have a strong chance of breaking through the $85.9 resistance and advancing towards $100, as previously forecasted.
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