In recent weeks, the Litecoin (LTC) price had entered a downtrend and saw its lowest level since February. Despite this price drop, it is noteworthy that large investors continue to accumulate Litecoin. Since mid-May, Litecoin, which has shown poor price performance, has not lost the interest of whales.
On-Chain Analysis of LTC
On-chain analysis shows that this group of large investors continues to accumulate LTC. Since the beginning of June, there has been a 2% increase in the number of whales holding between 10,000 and 1,000,000 tokens. This group has now reached 613 addresses, the highest level seen in March. These large investors hold 56% of Litecoin’s total circulating supply. Despite the price drop, the increase in tokens by large investors usually indicates that they see this drop as a buying opportunity and believe the token‘s value will increase in the future.
However, for a significant increase in Litecoin’s price, a change in market sentiment is needed. Currently, this sentiment metric is at -0.021, indicating negative market sentiment, which could usually signal a continuing price drop. Currently, Litecoin is trading at $71.58, and the token’s value has dropped by 17% in the last month. The Moving Average Convergence Divergence (MACD) indicator predicts that the price drop may continue. This indicator is used to identify potential buy and sell signals.
Sell Pressure on LTC
Litecoin’s MACD line is below the signal line and the zero line. This could mean that the short-term moving average is below the long-term moving average and is considered a bearish signal. Therefore, investors usually interpret this as a signal to sell or open a short position.
If the sell pressure increases, the Litecoin price could drop to $70.50. However, if sentiment turns from negative to positive and buying momentum increases, the token’s price could rise to $74.61. To determine Litecoin’s future price movements, market sentiment and technical indicators need to be closely monitored. While whale accumulation is seen as a positive sign in the long term, caution is advised in the short term.
