Layer-1 coin Litecoin has emerged as the market’s top gainer over the past 24 hours, bucking the prevailing downtrend seen in the broader cryptocurrency market.
The 10% rally comes amid a notable increase in whale accumulation, with large investors gradually building their positions over the past week. With a growing bullish bias, LTC appears poised to extend its current gains.
Litecoin Whales Increase Holdings
On-chain data reveals that LTC has seen a triple-digit surge in its large holders’ netflow over the past week. According to IntoTheBlock, this has climbed by 103% during that period.
Large holders refer to whale addresses that hold over 0.1% of an asset’s circulating supply. Their netflow measures the difference between the coins these investors buy and the amount they sell over a specific period.
When an asset experiences a spike in large holder netflow, its whale addresses are increasing their holdings. This is a bullish signal, typically driving upward price momentum as these big investors bet on the asset’s future growth.
Retail investors often follow this trend, seeing the increased whale activity as a sign of confidence. As whales accumulate, the rising demand could push LTC’s price higher, creating a positive feedback loop in the market.
Further, the coin’s Relative Strength Index (RSI), assessed on the daily chart, confirms the surge in demand. At press time, LTC’s RSI is at 54.08 and is on an upward trend.
This momentum indicator measures an asset’s overbought and oversold market conditions. It ranges between 0 and 100, with values above 70 indicating that the asset is overbought and due for a correction. Conversely, values under 30 suggest that the asset is oversold and may witness a rebound.
At 54.08 and climbing, LTC’s RSI suggests a moderate bullish momentum. It indicates growing buying pressure with the potential for further upward movement if the trend continues.
LTC Price Prediction: Could $124 Be Next?
LTC’s Elder-Ray Index has posted a positive value for the first time in eight days, highlighting the bullish shift in market trends. At press time, it is at 4.26.
An asset’s Elder-Ray Index measures the relationship between its buying and selling pressure in a market. When the index is positive, it indicates that bullish momentum is dominant, suggesting that buyers are in control and the asset’s price is likely to continue increasing.
If this holds, LTC’s value could rocket above $120 to trade at $124.03.
However, if profit-taking resurfaces, LTC’s price could shed current gains and drop to $109.81.
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Disclaimer
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