- Large investors accumulating LTC: Over $230 million worth of Litecoin bought by whales in the last month.
- Price breakout and potential bull run: LTC price climbs after whales accumulate, hinting at a new bull phase.
Litecoin (LTC) has been making waves lately, with its price surging alongside a significant buying spree from large investors, commonly referred to as “whales.” This activity has fueled speculation about a potential bull run for the cryptocurrency.
Whales Loading Up on LTC
Data from IntoTheBlock’s “Large Holders Netflow” indicator reveals a bullish trend for Litecoin. This metric tracks the net flow of coins into wallets holding at least 1% of LTC’s circulating supply. Over the past month, these wallets have seen a consistent inflow, amassing roughly $230 million worth of Litecoin. Notably, May 10th saw a particularly large purchase, with whales snapping up a staggering 900,000 LTC—the biggest single-day accumulation since February. This buying spree represents a third of the total LTC whales have acquired in the last 30 days, bringing their total holdings to 2,751,633 LTC.
Litecoin Price Hints at Bullish Breakout
The recent whale activity coincides with a price uptrend for Litecoin. After bottoming out at $71 on April 13th, LTC has climbed steadily, reaching nearly $90—a 27% increase. This price movement suggests a potential breakout and the start of a new bull phase for the cryptocurrency.
Technical Analysis Backs Bullish Sentiment
Technical analysis of the LTC price chart reinforces the bullish sentiment. Litecoin found support within a horizontal range established between September 2023 and February 2024. This support zone preceded the current uptrend, which began in early April. The price reached a peak of $113 on April 2nd before experiencing a correction. This correction can be interpreted as a retest of the support zone’s upper boundary, leading to the ongoing price increase.
A bullish sign is LTC’s recent break above a symmetrical triangle pattern. This technical indicator often signals the beginning of a new bull run. If this holds true, LTC could be embarking on its third bullish wave, potentially revisiting its previous all-time high above $300. This projection is based on the 1.681 Fibonacci extension level drawn from the first two waves. A successful retest of the $113 mark, which represents both the prior high and the 2023 peak, would further solidify this bullish outlook.
Confirmation Needed for Sustained Uptrend
While the current indications are positive, further confirmation is necessary to ensure a sustained uptrend for Litecoin. Continued impulsive price increases are crucial. The most significant confirmation would be a break above $113, reclaiming both the previous high and the 2023 peak.