- Despite recent fluctuations in altcoin markets, Litecoin (LTC) has witnessed an 8% price increase over the past month, with miners and crypto whales intensifying their accumulation activities.
- As the next Litecoin halving event approaches, the big question is whether these accumulations will help the LTC price surge past the $100 mark.
Litecoin (LTC), despite the recent tremors in the altcoin markets, has observed a price surge of 8% in the past month. A crucial catalyst for this rally seems to be a sweeping wave of accumulation amongst Litecoin miners, as indicated by on-chain data. Now, all eyes are set on whether LTC will be able to breach the $100 threshold in the impending days.
Less than two months away is Litecoin’s next halving event – a coded modification to the cryptocurrency’s protocol that halves the reward miners receive for adding new blocks to the blockchain. This built-in inflation control mechanism ensures a reduction in the creation of new cryptocurrency units. In anticipation of this reward cut, Litecoin miners, who held a significant 2.5% of the total circulating LTC coins, initiated a stacking strategy in early June 2023, after offloading much of their reserves in May.
The Miner Reserves data from IntoTheBlock, providing real-time balances of crypto wallets associated with recognized miners, indicates a substantial reserve increase of 160,000 LTC between May 31 and June 7. This accumulation wave showcases miners’ confidence despite the recent industry-wide shrinkage following the U.S. SEC’s legal actions against Coinbase and Binance. Given their considerable stake in LTC, this bullish sentiment could potentially induce positive price swings in the near future.
Moreover, on-chain data reveals that crypto whales, high-value investors, have capitalized on the recent LTC price adjustment to augment their reserves. The Large Transaction metric, which sums up daily transactions exceeding $100,000 in value, has noted a 23% increase in whale transactions from 893 to 1,100 between May 22 and June 7. These large-scale accumulations signify that miners are not the lone stakeholders hoarding LTC, anticipating future price surges prompted by the halving event.
Assuming this accumulation trend continues and crypto whales jump on board, there is a strong chance that LTC could build up enough momentum to clear the $100 mark in the near term. IntoTheBlock’s In/Out of The Money Around Price (IOMAP) data, however, cautions about an initial resistance around $92. If the bullish impetus holds strong, the LTC price could potentially reach $105, provided it doesn’t drop below the critical $86 support level.