Litecoin Whales Begin Accumulating, Can Price Retest $100?

Although short-lived, Litecoin (LTC) reclaimed the $100 level in February. After falling below $70 on March 10, how much could the increased activity of whales affect LTC in the coming weeks?

Whales are taking advantage of the recent Litecoin correction to buy the dip.

Litecoin Whale Activity Intensifies

Litecoin broke above $100 on 15 February. LTC climbed above $100 for the first time since slipping below the milestone following the TerraUST crash in May 2022. Critical on-chain metrics show that the recent 30% retracement hasn’t stopped the crypto. whale.

According to blockchain data analytics firm IntoTheBlock, the average size of LTC transactions increased by more than 600% in March 2023.

The chart below shows that the average LTC transaction size increased from $13,355 on March 2 to $81,022 as of March 23. This represents a six-fold increase in large transactions.

When the average transaction size increases, the price declines, indicating an influx of large investors who want to buy the dip. Furthermore, given their financial strength, buying pressure from large crypto investors could push LTC to another rally in the coming weeks.

Notably, the recent accumulation trend among a significant group of whales further validates this bullish trend. Sentiment data shows pressure from Litcecoin whale investors holding 1 million to 10 million LTC.

The blue line in the chart below shows that the whales started buying when the price dropped on March 1st. Between March 1 and March 24, he added 900,000 LTC tokens worth approximately $80 million.

This group of whales took advantage of the recent decline to accumulate more coins as they position themselves for future gains. Given how they have timed their moves perfectly in the past, Litecoin could soon enter another rally.

LTC Price Prediction: $110 Is Achievable

Sentiment’s market value to realized value (MVRV) ratio shows that investors who bought Litecoin in the last 30 days are at a 10% profit. A closer look at historical MVRV trends reveals that LTC holders have often taken profits in the 20% region. This means that $100 could be the next LTC resistance area.

However, if Litecoin moves above $100, holders can expect minimal resistance until it reaches $115, roughly the 27% take-profit line.

Nevertheless, if LTC can drop below $80 in the 15% stop-loss zone, the bears could turn that around. Further downside could see LTC again below $70 before holders decide to cut their losses.