Litecoin Up 14%, Can Whale Sell-offs Reverse The Trend?
1. Litecoin Reaches 4-Month High: Can Whale Sell-offs Threaten The Uptrend?
Litecoin has recently attracted attention with a remarkable 14% increase, reaching 116 USD after a series of consecutive growth days. This price surge reflects the broader cryptocurrency market trend, especially as the altcoin season approaches.
However, despite the optimism in the market, large-scale sell-offs by whales may pose potential risks to this uptrend. Major investors are starting to lock in profits, which could undermine Litecoin's ability to maintain its current high price.
2. Sell-Off Pressure From Whales Weakens Litecoin Support
Over the past five days, whale wallets holding between 100,000 and 1 million LTC have sold over 500,000 coins, worth approximately 58 million USD. This signals increased caution among large investors, who may be skeptical about the sustainability of the current price increase. These large-scale sell-offs could significantly impact market sentiment, especially with high-volume trades, reducing Litecoin’s liquidity.
If this selling pressure continues, retail investors may become more negative, adding further downward pressure on Litecoin in the short term.
Litecoin Whale Holding. Source: Santiment
3. Positive Data From Long-Term Holders
Despite the whale sell-offs, data from the Mean Coin Age (MCA) indicator suggests a positive outlook. Long-term holders (LTHs) continue to hold onto their Litecoin and have not participated in the recent sell-off. This indicates stability and confidence from this group of investors, which could help maintain Litecoin's price stability despite the pressure from whale activity.
Litecoin Mean Coin Age. Source: Santiment
4. Key Resistance And Litecoin Price Outlook
Currently, Litecoin is trading at 116 USD, near a key resistance level of 117 USD. While it has shown strong growth, the whale sell-offs may pose a significant barrier to further upward momentum.
To sustain the uptrend, Litecoin will need strong buying support to break through the 117 USD resistance. If selling pressure continues, Litecoin may retreat to 105 USD, where there is crucial support. However, if retail investors and long-term holders continue their support, Litecoin could break through the 117 USD resistance, opening up the possibility of reaching 124 USD and confirming the ongoing uptrend in the long run.
Litecoin Price Analysis. Source: TradingView