Litecoin (LTC) Attracts $45M Whale Inflows Amid Undervaluation Signals

Key Takeaways

• Litecoin whales added 440,00 more coins to their stash, indicating a potential LTC price increase.
• The MVRV ratio shows that LTC has hit a historical accumulation point following the 12% decline.
• Technical indicators reveal a bullish crossover on the 4-hour chart, suggesting a possible rise to $140.
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This week, Litecoin(LTC) whales prioritized accumulating more of the coin. Despite the pressure to buy, LTC’s price dropped by nearly 12% in the last seven days.

Interestingly, this spike in accumulation comes as on-chain data suggest LTC  may be undervalued. It also speculates that LTC could be in line for a notable price increase. But will this surge in buying power drive a lasting price rebound? Let’s find out.

Litecoin Key Stakeholders Take Advantage of the Opportunity

At the beginning of the week, Litecoin’s price hit $130. However, rising selling pressure, coupled with a drop in liquidity in the market, enforced the coin’s correction.

As a result, LTC. Currently trades around $102. Around the same period, the price hovered near $130; Santiment data shows that the number of coins held by addresses holding 100,000 to 1 million LTC was 26.49 million.

Today, the figure has risen to 26.93 million, indicating that Litecoin whales scooped about 440,000 coins this week. At the altcoin’s current price, this is worth approximately $45 million.

Historically, whale accumulation has preceded a notable price rally. Therefore, if buying pressure increases, LTC will likely retest $130 in the short term.

Besides this potential price increase, historical data shows that LTC might be at a good accumulation zone.

According to Santiment data, Litecoin’s Market Value to Realized Value (MVRV) ratio has dropped -4.04%. The MVRV ratio can be used to evaluate tops and bottoms while showing the level of unrealized profits and losses in the market.

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When the ratio increases, it indicates rising unrealized gains and, if extreme, potential price reversal. However, a decline in the MVRV ratio, especially in the negative region, indicates rising losses and a bottom.

Therefore, since the LTC 30-day MVRV ratio is positive, it indicates that the cryptocurrency might be undervalued. Thus, it could be a good spot to accumulate before a major price increase.

LTC Price Analysis: Rebound Incoming

From a technical perspective, the 4-hour chart shows a bullish crossover on the Moving Average Convergence Divergence (MACD).

The MACD measures momentum, and the bullish crossover happens when the shorter Exponential Moving Average (EMA) rises above the longer one.

The 12 EMA (blue) has crossed over the 26 EMA (orange), indicating that Litecoin’s bearish trend might soon turn bullish. If this happens, the cryptocurrency’s value might avoid dropping below $93.65 at the 0.786 Fibonacci retracement level.

In this scenario, the LTC price could rise to the 0.236 Fibonacci level near $126.86. Litecoin’s price could rally toward $140 in a highly bullish scenario.

However, the trend might stay bearish if the price fails to break the 0.618 Fib level. In that case, the value could slide to $80.73.