Indicators such as the accumulation of whales and the increase in active addresses for Litecoin suggest that major investors expect a recovery in LTC prices. Despite some positive signs, only 28% of Litecoin holders are currently profitable, with the majority still in the red, indicating market uncertainty.
Litecoin (LTC) is showing signs of weakening bearish momentum after falling 4% over the past three days. At the time of writing, LTC price was testing the critical support level at $67. This level is important for traders because below it there will be more aggressive selling pressure, which can push the price lower.
Conversely, LTC could rebound if current market indicators remain bullish. The next few trading sessions will be crucial in determining the immediate trajectory of the popular altcoin.
Whale accumulation hints at Litecoin price
Large investors, also known as “whales,” are reportedly increasing their holdings of Litecoin. Analysis based on Santimento data reveals a growing trend of accumulation by these influential players. Whale accumulation is typically taken as a signal that major investors believe that an asset may have bottomed out, or that the current price is an attractive entry point. According to the CNF report, analysts are already predicting that LTC prices will soar to all-time highs.
This aggressive buying by whales signals a possible change in market sentiment that will lead to a recovery in Litecoin prices. Another encouraging indicator for Litecoin is the increasing number of active addresses on the network.
Provided by: Into the Block
The number of active addresses increased by 2% in the last 24 hours alone. This shows that user activity and engagement with blockchain is increasing. This increase in network participants is often associated with increased demand and interest in trading.
An increase in active addresses could serve as a positive signal for Litecoin price as it suggests more individuals are trading or sending LTC. This surge in activity may precede a period of stabilization or recovery in prices as demand increases. Meanwhile, according to a CNF report, Litecoin is nearing its supply limit, with only 9 million LTCs left to mine.
The majority of LTC holders remain in the red
According to data from IntoTheBlock, despite some positive indicators, only 28% of Litecoin holders are currently profiting. This highlights that the majority of investors are buying at higher price points and waiting for a market recovery where break-even or profits could be realized.
Provided by: Into the Block
On the other hand, 6.06% holders have reached the break-even point. However, 5.45 million addresses are lost. The fact that the majority of holders are underwater adds an element of uncertainty to the current market situation.
The short-term outlook for Litecoin price is largely dependent on whether it can maintain support at the $67 level, with an expected return to $76, CNF reported. Falling below this level can cause further losses. On the contrary, if this level holds steady, it may give traders confidence in the upside potential.
Currently, despite market fluctuations, LTC prices are stagnant. At the time of writing, Litecoin price was up 0.11% to $68.24 on Tuesday, October 1st. Due to the poor performance, investors initiated long-term liquidations of $666,610 in the past 24 hours, according to data from Coinglass.
These prolonged liquidations could put further pressure on prices as selling pressure increases. On the other hand, the short-term liquidation amount is $55,200, which is not enough to offset the impact of the long-term liquidation.
