Since early August, Litecoin (LTC) price has been in a state of consolidation, with movements limited within a narrow range. Thus, despite briefly breaking out of this range, LTC was quickly pulled back into the consolidation, indicating a weakening of the bullish momentum.

As a result, traders are becoming wary of a prolonged period of stagnation. However, the increase in LTC whale activity could signal an imminent shift in momentum, with these large holders looking to alter the course of Litecoin’s price action.

Litecoin Whales Can Change the Wave

Whale activity around Litecoin has increased significantly over the past month, showing growing interest from large investors. Transactions worth over $100,000 grew by 38%, from $3.21 billion to $4.43 billion. Thus, this increase in large-scale transactions is a positive sign. It suggests that whales are actively accumulating LTC, potentially preparing for a bullish exit.

The heightened activity of these large wallet holders often serves as a leading indicator for future price movements. In short, whale accumulation has been linked to significant price movements, as their influence can move the market. Should this trend continue, it could indicate growing confidence in Litecoin’s potential to break out of its consolidation phase.

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Litecoin Whale Transaction Volume. Source: IntoTheBlock

Despite the optimism surrounding whale activity, technical indicators paint a different picture. The Moving Average Convergence/Divergence (MACD) indicator shows that a bearish crossover is imminent.

The green bars on the MACD histogram, which represent bullish momentum, are fading, signaling that selling pressure could soon increase. Therefore, if the bearish crossover is confirmed, it could negate the bullish signals from whale activity, leading to a possible price decline.

Thus, this contradiction between whale trading and MACD suggests that Litecoin price may be in for a turbulent period. While whales may continue to accumulate, broader market signals indicate that bearish forces are building.

MACD da Litecoin. Fonte: TradingView

LTC Price Prediction

Litecoin price is currently trading at $65, consolidating within a range of $68 and $59. If LTC breaks above the upper boundary of this range, it could trigger an 18% rally, pushing the price towards $76. This would mark a significant recovery for the cryptocurrency, driven by whale activity and bullish sentiment.

However, such a price rally is only possible if whales maintain their buying pressure and overcome the bearish trends of the broader market. A confirmed breakout would require Litecoin to flip $68 into support, signaling a new bullish phase.

Read more: How to buy Litecoin (LTC) in 4 steps

Litecoin Price Analysis. Source: TradingView

If Litecoin fails to break above $68 and remains below this key level, consolidation could persist, extending the stagnation period. A drop below $59 combined with reduced whale activity would invalidate the bullish thesis and could lead to further price declines.

The article Litecoin Whales Could Drive 18% Bullish Rally – Analysis appeared first on BeInCrypto Brasil.