- Litecoin once again approached the $70 resistance, following a recovery from its 2023 low of $58 on September 12.
- Whale transactions peaked on September 29 with 2,900 transactions, but have since seen a decline, potentially influencing LTC’s price trajectory.
The Dance Around $70: Whale Activities in Spotlight
Litecoin‘s recent price movement paints a picture of resilience and recovery. After hitting a year’s low of $58 in mid-September, the cryptocurrency’s value marched forward to retest the $70 mark. As with all financial assets, various factors influence these price swings. A deep dive into Litecoin’s on-chain metrics provides clarity on its recent performance and future potential.
Whale Transactions and Market Impact
Post the halving event on August 2, Litecoin saw a price decline. But the crypto community witnessed a notable surge in trading activity when its price neared the 2023 low. Specifically, whale transactions, or trades executed by significant holders of Litecoin, rose remarkably from 1,800 to 2,900 between September 10 and September 29. The spike on September 29 marked the highest whale activity since August, suggesting renewed interest or strategic moves by major stakeholders.
Whale transactions, typically, are trades exceeding $100,000 on any given trading day. These large-scale trades often indicate bullish sentiments for several reasons:
- They enhance market liquidity, facilitating spot market participants to finalize their trades efficiently.
- Such activity boosts retail investor confidence, as they often look at whales as market trendsetters.
This heightened activity could be the reason behind LTC‘s swift 16% jump from $58 to $68 within a month. But, as recent data shows, whale transactions have decreased, sliding from 2,900 to 2,100 by October 2. This reduction could be behind the cryptocurrency’s minor price correction, sparking questions about future market dynamics.
Predicting LTC’s Path Forward
With the global crypto market buzzing with bullish sentiments, there’s potential for whales to reignite their buying spree. If so, LTC may remain comfortably above the $60 mark. Furthermore, the Exchange On-chain Market Depth chart, indicating current active Litecoin orders, suggests a slightly stronger demand than supply by about 50,000 LTC.
Market watchers have spotted orders to purchase 234,370 LTC if the price dips to $63, a move that can stabilize any potential downturn. However, should whale activity remain subdued, a downward push below $60 becomes a possibility.
On the flip side, if bullish whales become active again, Litecoin might eye the $75 milestone. Some traders, though, are prepared to offload 230,490 LTC if the price reaches a 5% increase at $69. Such a move could cause a temporary price decline. Yet, breaking this resistance might propel Litecoin towards the sought-after $75, unseen since August.