Litecoin (LTC) Shows Renewed Strength
Litecoin (LTC) is showing renewed strength after shaking off weeks of bearish pressure, as the altcoin surged over 6.5% in the past 24 hours to hit a three-month high. Following a steady climb from a recent local low of $83, Litecoin briefly touched $91 before settling around $89 at the time of writing.
Notable Boost in Trading Volume
This upswing came with a notable boost in trading volume, which rose by 31% to reach over $509.5 million. A surge in volume accompanying a price increase typically indicates growing market interest and buyer confidence, with traders stepping in to accumulate.
On-Chain Data Reveals Accumulation Trends
The bullish price action is not happening in isolation. On-chain data reveals a clear trend of accumulation among investors. According to IntoTheBlock, the total flow of Litecoin into exchanges has dropped significantly over the past three weeks, reaching its lowest level in three months. Lower exchange inflows suggest that holders are opting to keep their LTC in private wallets rather than sell—an indication of rising accumulation.
Activity Among Large Holders
This pattern becomes even more pronounced among large holders, or whales. Netflows from large LTC holders to exchanges have decreased sharply in recent weeks, reinforcing the idea that these influential investors are holding tightly to their assets. In fact, there has been a net positive inflow of 116,800 LTC among whales, showing their increasing stake in the asset’s potential rally.
Stock-to-Flow Ratio and Supply Dynamics
At the same time, Litecoin’s stock-to-flow ratio—a key measure of scarcity—has spiked to 306. This metric compares the current supply of LTC to the rate of new issuance and suggests a tightening supply. When scarcity increases while demand holds steady or rises, it typically leads to higher prices.
Technical Indicators Support Bullish Case
Technical indicators also support the bullish case for Litecoin. For much of the past month, LTC had been trading inside an ascending price pattern within a broader descending channel. With the latest rally, Litecoin has now broken through the upper boundary of the descending channel. Currently, it is in the process of retesting that breakout level—a move that, if successful, could pave the way for another leg up.
MACD Indicator Signals Strengthening Momentum
Further confirming the strong upward momentum is Litecoin’s Moving Average Convergence Divergence (MACD) indicator, which has been rising steadily since a bullish crossover two weeks ago. The MACD is now up to 1.2, signaling strengthening momentum and increasing buyer control in the market.
Potential Resistance Level at $96
With a successful retest of the breakout zone, analysts suggest Litecoin could push toward the next significant resistance level at $96. That level would represent a major psychological milestone and could serve as a new support if the altcoin continues gaining traction.
Possible Bearish Scenario
However, not all scenarios are bullish. If bulls fail to hold the breakout and Litecoin’s price falls back below the retest level, the asset could retreat to $83, where it previously found local support. The coming days will be key in determining whether this rally has the strength to continue or if a temporary correction is on the horizon.
Overall Market Positioning
Still, with whale accumulation on the rise, trading volume climbing, and scarcity intensifying, Litecoin appears better positioned than it has been in months. If these conditions persist, a move to $96 could be more than just speculative—it might be the next stop in a broader upward trend.
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