Litecoin is making headlines again with a price rise of 14%, trading at $116 a few days after a consistent upward momentum. This recent surge coincides with signs of a wider crypto market rally and a growing altcoin season.
However, despite optimism, important whale activity could undermine this bullish trend. Larger holders are securing profits, and this move may challenge Litecoin’s ability to maintain that profit.
Litecoin support could decline
Over the past five days, whale wallets holding 100,000-1 million LTC have offloaded over 500,000 coins. The massive sale amounts to around $58 million, suggesting cautious sentiment among key investors. Their actions mean they may question the lifespan of the current assembly.
A sudden spike in sales pressure indicates potential instability first. These massive transactions often affect market direction due to their liquidity impact.
If sales continue at this rate, retail sentiment can become bearish, which can exacerbate the pressure on Litecoin’s short-term performance.
Despite the selling of whales, chain data from the Average Coin Age (MCA) indicator suggests a different story. Long-term holders (LTHS) have shown resilience and have chosen not to comply with lawsuits when selling their holdings. These wallets, known for their conviction, continue to be held. This is a positive sign of price stability.
LTH usually determines medium to long term trends, with minimal participation in recent divestitures indicating confidence in Litecoin’s outlook. This counterforce could provide the support that Litecoin needs to resist further downside pressure and stabilize the price at its current level.
LTC prices should violate major resistance
At the time of writing, Litecoin is trading for $116, and I am embarrassed by its $117 resistance level. Prices have risen 14% over the last 24 hours, but the looming whale sale could create friction.
A strong bullish push is required to overcome the overhead barrier and maintain upward momentum.
If bearish emotions driven by whale activity intensifies, Litecoin can follow that step to $105. This level serves as the next important support and could be the basis for horizontal integration if sales continue.
Alternatively, continued support from retail buyers and LTHS could help Litecoin break past $117. Violating this resistance will cause strength to signal, opening the door for a move towards $124, marking a new four-month height, and verifying bullish trends.
Disclaimer
In line with Trust Project guidelines, this price analysis article is for informational purposes only and should not be considered financial or investment advice. Although Beincrypto is committed to accurate and unbiased reporting, market conditions are subject to change without notice. Always conduct your own research and consult with an expert before making a financial decision. Please note that our terms and conditions, privacy policy and disclaimer have been updated.
