Litecoin has dropped by 5.64% in the past 24 hours and 7.84% over the last week.
Despite this significant decline, various technical indicators suggest a possible reversal due to increased accumulation by large investors (whales). While Litecoin’s price has been falling, market activity points to a potential turnaround.
Current Status and Potential Reversal of Litecoin (LTC)
A few hours ago, Litecoin (LTC) was trading at $72.98, with a significant 121.34% increase in trading volume to $558 million in the last 24 hours. According to CoinMarketCap, LTC’s market cap has decreased by 5.6% to $4.5 billion at the time of writing.
Analysts have indicated that LTC is struggling to establish an upward trend. The prices are facing substantial pressure, with a local support level around $70.89 and a resistance level at $80.29. With the ongoing price consolidation, there is a risk that the price could drop below the $70.89 support level.
Market pressure is pushing prices down, and if this downtrend continues, the new support level could fall to around $63.46. However, the 121% surge in trading volume suggests that bears are attempting to maintain current prices, leading to consolidation.
The Relative Strength Index (RSI) was at 29.52, with the RSI-based moving average (MA) at 40.70. When the RSI-based MA falls below its moving average, it indicates a strong bearish trend. An RSI below 30 signifies that LTC is in oversold territory.
Being in oversold territory is typically a sign of a potential reversal, where prices can bounce back in the near future. This condition presents buying opportunities as prices recover from oversold levels.
Increased Activity and Positive Sentiment Surrounding Litecoin (LTC)
According to Santiment, Litecoin (LTC) has seen a significant surge in active addresses, rising from 3.13 million to 4.54 million between June 7th and June 15th, marking a 45% increase.
This uptick in active addresses over the past week is a positive indicator of market sentiment. Increased activity suggests growing interest and confidence in LTC among investors.
Moreover, data on whales—entities holding more than $5 million worth of LTC—shows heightened interest and trust in the cryptocurrency. Currently, whales hold 52.513% of the total LTC supply.
Since June 13th, the percentage of LTC supply held by whales has risen from 52.06% to 52.513% by June 15th. This accumulation trend indicates growing positive sentiment and reduced sell-off among large holders, potentially influencing LTC’s market dynamics positively in the near term.
Litecoin (LTC) Market Outlook and Potential Scenarios
Litecoin (LTC) has witnessed a volatile market over the past seven days, dropping from a recent peak of $85.5 to $72.28. If this downward trend persists, LTC could establish a new low around $63.58, setting a fresh support level.
On the other hand, if positive market sentiment prevails, LTC may reverse into a bullish trend aiming for $85.96. This scenario hinges on Bitcoin (BTC) recovering from its current decline, as BTC’s performance often influences broader cryptocurrency trends, including LTC.
⚠️Disclaimer
This content aims to enrich readers with information. Always conduct independent research and use discretionary funds before investing. All buying, selling, and crypto asset investment activities are the responsibility of the reader.