Litecoin ends a strong week supported by a resurgence of social engagement Whales are contributing to the rally, but the cryptocurrency could soon pull back
It has been an interesting week for Litecoin, mainly due to the surge in Litecoin social activity over the past few days. This has been accompanied by some notable bullish price action, but can cryptocurrencies sustain this trend in the long term?
Litecoin’s rise in social engagement was particularly noticeable in its social metrics. For example, their X (Twitter) account has been losing followers over the past six months. However, the number of followers started to increase again at the beginning of this month, after a downward trend.
Source: Messari
The number of followers has been on the rise since the second week of October, indicating renewed interest in cryptocurrencies. This observation can be interpreted as a precursor to an overall increase in LTC demand.
It was also a good week for altcoins in terms of price. At press time, the stock was valued at $75.32, up 17% from its weekly low. In fact, these gains have helped Litecoin emerge as one of the biggest gainers on the market over the past week.
Source: TradingView
On the chart, LTC has been hitting new lows since August, confirming that accumulation is progressing.
This is a sign of changing sentiment and social activity around cryptocurrencies. Furthermore, it also emphasizes the possibility that the bullish recovery trajectory will continue.
Litecoin whales continue to increase their balances
On-chain data reveals that large holder accounts have been accumulating altcoins for some time.
For example, the inflow of large holders surged from 175,630 LTC on October 13th to 438,700 LTC on October 16th. This hike coincided with a period when the cryptocurrency was surging up the price charts.
Source: Into the Block
Meanwhile, the outflow of large Litecoin holders also recorded a notable spike, from 95,480 LTC on October 13th to 202,180 LTC on October 14th.
This revealed that inflows to addresses with large holders were twice as high as outflows from addresses in the same category. In other words, whales are actively accumulating Litecoin.
Will Litecoin be able to maintain its current momentum? On-chain data reveals a significant spike in trading volume starting October 12th and peaking on October 15th. Sadly, both buy and sell volumes have declined since then.
Source: HyblockCapital
Taken together, the buy and sell volume profiles suggest that the initial volume that sparked the current bull market has since declined. This could signal further selling pressure in the coming days.
In addition to that, LTC recently entered a resistance line at the $76 price level. This could lead to profit taking and a drop in the chart.
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