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Litecoin Price Breaks Out Of Accumulation Zone as Whales Accumulate More Than Two Million LTC In 30 Days

Last Updated May 21, 2024 1:08 PM
Nikola Lazic
Last Updated May 21, 2024 1:08 PM
By Nikola Lazic
Verified by Peter Henn

Key Takeaways

  • Litecoin whales are buying heavily, indicating bullish sentiment.
  • A significant purchase spike on Mat 10th was the largest since February.
  • The current uptrend may signal start of new bull phase.

Recent data shows that Litecoin whales have been actively purchasing LTC, amassing around $230 million worth in the past month. This activity, tracked by the “Large Holders Netflow” indicator from IntoTheBlock , shows net inflows into the wallets of investors holding at least 1% of the circulating supply of Litecoin. Meanwhile, the price of Litecoin has been in an uptrend since its April 13 low of $71. It has reached nearly $90, an increase of 27%. Could this lead to more upside? 

Whales Accumulate LTC

When positive, the “Large Holders Netflow” metric reflects net coin deposits into these large holders’ balances. This, in turn, suggests a bullish outlook for Litecoin’s price. In contrast, a negative value would indicate selling activity by these whales which could lead to bearish outcomes.

Over the past month, this indicator has largely shown positive values, with a significant spike on May 10 when whales bought 900,000 LTC in a single day—the largest daily purchase since February. This buying spree represents about one-third of the total Litecoin accumulated by these large holders in the last 30 days, totaling 2,751,633 LTC.

Litecoin (LTC) Price Analysis 

The price of Litecoin stabilized above $60 inside its horizontal support zone from September 2023 until February 2024, when the next uptrend started. On April 2, it reached a peak of $113, followed by a sharp downturn. 

LTC
LTCUSD | Credit: Nikola Lazic/Tradingview


This downturn was a retest of the upper level of the horizontal support zone on April 13, resulting in the current price increase. Because it broke above a symmetrical triangle, it could have signaled the start of the next bull phase. 

If this is true, LTC is now developing its third wave, which could potentially revisit its last bull market high above $300. This would be a 1.681 Fibonacci extension level drawn from waves one and two. If this happens, we could expect another high for wave five. 

Litecoin is trying to trade above the ascending support, which is a positive sign. However, to confirm this, we would need to see further impulsive increases. The first major confirmation would come if it rises above $113, which is both the prior high and the higher peak of 2023. 

Disclaimers

Please note that the contents of this article are not financial or investing advice. The information provided in this article is the author’s opinion only and should not be considered as offering trading or investing recommendations. We do not make any warranties about the completeness, reliability and accuracy of this information. The cryptocurrency market suffers from high volatility and occasional arbitrary movements. Any investor, trader, or regular crypto users should research multiple viewpoints and be familiar with all local regulations before committing to an investment.

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