Since early August, Litecoin (LTC) price has been consolidating and is limited to movement within a narrow range. Although LTC briefly broke out of this range, it quickly reconsolidated, indicating that the bullish momentum has weakened.
As a result, traders are wary of an extended period of stagnation. However, the increased activity of LTC whales could signal an impending change in momentum as these large holders seek to change the direction of Litecoin’s price trend.
Litecoin whale could change the waves
Whale activity surrounding Litecoin has spiked significantly over the past month, indicating increased interest from large investors. Transaction value of $100,000 or more increased by 38%, from $3.21 billion to $4.43 billion. This increase in large trades is a positive sign as it suggests that whales are actively accumulating LTC and may be preparing for a bullish breakout.
The high activity of these large wallet holders often acts as a leading indicator of future price movements. Historically, whale accumulations have been associated with significant price fluctuations as they can move the market. If this trend continues, it could signal growing confidence in Litecoin’s ability to emerge from the consolidation phase.
Read more: How to buy Litecoin (LTC) and everything you need to know
Litecoin whale trading volume. Source: Into the Block
Despite the optimism surrounding whale activity, technical indicators paint a different picture. The Moving Average Convergence Divergence (MACD) indicator indicates that a bearish crossover is imminent.
The green bar in the MACD histogram, which represents bullish momentum, is disappearing, indicating that selling pressure may increase soon. If a bearish crossover is confirmed, it could cancel out the bullish signal from whale activity and lead to a potential price decline.
This discrepancy between whale trading and MACD suggests that Litecoin price may face a period of turmoil. Whales may continue to accumulate, but broader market signals indicate that the bears are strengthening.
Litecoin MACD. Source: TradingView
LTC price prediction: aiming to rise
Litecoin price is currently trading at $65 and has settled within a range of $68 to $59. If LTC breaks out of the upper end of this range, it could trigger an 18% rally and push the price towards $76. This will mark a significant recovery for cryptocurrencies, driven by whale activity and bullish sentiment.
However, this price surge is only possible if the whales maintain buying pressure and outperform the overall market bearish trend. Once the breakout is confirmed, Litecoin will need to convert to support at $68, signaling a new bullish phase.
Read more: Litecoin (LTC) Price Prediction 2024/2025/2030
Litecoin price analysis. Source: TradingView
If Litecoin fails to break above $68 and remains below this key level, the price decline could continue and the period of stagnation could be prolonged. A drop below $59 and reduced whale activity could invalidate the bullish theory and lead to further price declines.
Disclaimer
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