Litecoin (LTC) is showing signs of recovery amid significant whale accumulation and strategic Fibonacci retracement levels.
The growing interest in the cryptocurrency market, especially among large investors, points to a potential bull trend for Litecoin.
According to data from IntoTheBlock, LTC whale balances increased from 7.44 million to 9.06 million in December, a sign of strong demand.
Litecoin’s recovery is being driven by whale accumulation and Fibonacci support levels, setting it up for a potential bull breakout in 2025.
Whale Activity Supports Litecoin’s Bullish Trend
Litecoin experienced a sharp decline in December, with prices falling from $147 to $86.69, but has since mounted a critical recovery. Currently, LTC has found solid ground between the 0.5 and 0.618 Fibonacci retracement levels and is consolidating between $96 and $105. This consolidation could provide a springboard for upward momentum if demand continues to increase.
Whale Accumulation Combines with Rising Retail Interest
The latest on-chain data shows a significant increase in whale accumulation. During December, whale balances more than doubled, reaching approximately 9.06 million LTC by the end of the month, accounting for 11.91% of the total supply. This increase demonstrates the confidence of large investors in Litecoin, but a decline is observed among the broader investor base, with this group decreasing from 29.8 million LTC to 28.31 million LTC. Retail investors, on the other hand, have shown little accumulation, with a small increase from 38.64 million coins to 38.67 million coins; however, the strong whale presence indicates a significant change in sentiment for LTC.
Derivatives and Trading Volumes Point to Renewed Interest
Litecoin’s market dynamics are being fueled by the increasing activity in derivatives. The latest data from IntoTheBlock shows a positive change in funding rates, and the recent increase supports the bullish outlook for LTC. With the increasing funding rates, trading volume increased by 11.40% to approximately $596.94 million in just 24 hours, reinforcing the increasing market interest and demand.