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Litecoin Whales Step In To Scoop LTC As It Falls To 4-Month Low — Is LTC Ready For A Rally?

Last Updated June 24, 2024 3:17 PM
Nikola Lazic
Last Updated June 24, 2024 3:17 PM

Key Takeaways

  • LTC price hit its lowest level since February; whales accumulated.
  • Litecoin tested crucial $70 support; reversal possible.
  • LTC price downturn may precede a major rally.

Litecoin (LTC) has experienced a downward trend in its price over the past few weeks, hitting its lowest level since February, despite an increase in purchases by large investors, or “whales.” However, their activity increased in the last few days, hinting at a potential accumulation before the price rises. 

With LTC dipping below $70 today, June 24, it has fallen inside the previously broken horizontal range that was viewed as the accumulation zone. A reversal could be in sight, as the daily RSI shows oversold conditions. 

LTC Whales Were Active In June

Despite Litecoin’s poor price performance since mid-May, there has been a noticeable uptick in whale activity, with these large holders accumulating more LTC. Specifically, since June, there has been a 2% increase in LTC whales—those holding between 10,000 and 1,000,000 tokens. As a result, this investor group now totals 613 addresses, a count last seen in March, and currently controls 56% of Litecoin’s total circulating supply of 74,675,850 LTC.

LTC
Supply Distribution | Source: Santiment

The accumulation by whales might suggest they view the price dip as a buying opportunity, anticipating that the asset is undervalued and likely to appreciate. However, for a significant upward price movement to occur, there needs to be a positive shift in sentiment. 

LTC Price Analysis 

From September 2023 until February 2024, Litecoin’s price stabilized above $60 within its horizontal support zone, setting the stage for the subsequent uptrend. On April 2, Litecoin reached a high of $113, but it experienced a significant drop soon after.

LTC
LTCUSD | Credit: Nikola Lazic/Tradinview

 

This decline tested the upper boundary of the horizontal support zone at $70 on April 13, leading to a recovery to $90 on May 21. However, shortly after, it started a new downtrend, which it is currently experiencing, leading to lower values than April 13. 

Since the previous uptrend was a five-wave impulse, the decrease from April 1 could be its corrective stage. The price fell to the 0.786 Fibonacci level, which would be its furthest point in a corrective stage. With the daily chart RSI signaling oversold conditions, there is a strong chance of a reversal. On the contrary, MACD is still displaying a downtrend, with the oscillator bar even slightly larger today than the red one. 

According to the Elliott Wave Theory, corrective waves can be a 100% retracement with the bullish count still valid. This is why even if LTC continues to decrease to $60, there would be a chance of a major rally starting after. 

LTC could dip sharply to the $60 area only to snap back quickly, picking up the liquidity needed for an uprise. But if it exceeds $60 on the downfall, the count would be invalidated. 

Disclaimer
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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