Litecoin (LTC) price briefly reclaimed the $75 area last week, sparking hopes of a bullish price breakout. With miners and crypto whales’ transactional activity gradually returning to pre-halving levels, here’s how LTC price may react.
Litecoin price action in recent weeks has been underwhelming compared to other mega-caps such as Bitcoin (BTC) and Solana (SOL) which have claimed new yearly highs. On-chain data reveals that key stakeholders within the LTC network are now positioned for a similar price breakout.
Litecoin miners recovered coins unloaded after halving
Similar to 2015 and 2019, Litecoin price entered an extended correction phase after the latest halving event on August 2nd. In an effort to get ahead of the losses, Litecoin miners went into a selling frenzy, offloading 500,000 LTC between Aug. 3 and Sept. 5. However, as the crypto market turned bullish at the end of October, confidence grew among LTC miners as they started collecting their block rewards again.
After weeks of rapid accumulation, Litecoin miner reserves crossed 2.6 million LTC on November 7th. This milestone is quite notable as it brought the miners’ current balances above the 2.55 million LTC they held at the completion of the halving event on August 3rd.
Miner reserves metric tracks the number of coins deposited in wallets controlled by recognized crypto miners and mining pools. Strategic investors often interpret it as a bullish signal when miners accumulate their block rewards during a market rally. This is a clear indication that the miners are looking for more profits rather than selling at the current prices.
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Litecoin has attracted increased demand from Crypto Whales
The Litecoin miners’ prolonged accumulation wave seems to have spread bullish sentiment across the ecosystem. According to IntoTheBlock, crypto whales have significantly increased their demand for LTC in recent weeks.
The graph below illustrates how the number of LTC whale trades has consistently increased over the past 30 days. On November 11, it hit a four-month high of 3,600 large transactions.
The whale transaction metric provides a daily total of the number of transactions that exceed $100,000 in value. Typically, a steady increase in whale trades as observed above is often taken as a bullish signal.
This indicates a growing interest among large institutional investors. And crucially, this coincidence with miners’ recent accumulation wave means that major stakeholders in the Litecoin ecosystem are positioned for impending bullish price action. It’s only a matter of time before strategic retailers also adopt an optimistic mindset.
If this thesis holds, the Litecoin price could experience a significant price breakout in the coming weeks.
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LTC Price Forecast: Breaking $80 resistance could catalyze bigger gains
Taking inferences from the above on-chain data points, Litecoin looks well positioned for an impending price breakout.
The Global In/Out of the Money (GIOM) data, which groups the current Litecoin investors according to their entry prices, also confirms this bullish LTC price prediction.
However, it shows that the bulls need to break the initial resistance at $78 to be sure to reclaim $80. As depicted below, 1.96 million wallets bought 11.95 million LTC at the average price of $77.81. If those investors exit early, they could cause an immediate LTC price correction.
But if the bulls can scale that selling wall, the Litecoin price is likely to reclaim $80 as predicted.
Still, the bears could negate the optimistic forecast if Litecoin price drops below $65. But in that case, the 406,590 holders who bought 4.84 million LTC at the minimum price of $67 could provide initial support. If those investors keep HODL firm, Litecoin price is likely to avoid a bigger downturn.
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Disclaimer
In accordance with the Trust Project Guidelines, this price analysis article is for informational purposes only and should not be construed as financial or investment advice. BeInCrypto is committed to accurate, unbiased reporting, but market conditions are subject to change without notice. Always do your own research and consult a professional before making any financial decisions. Please note that our terms and conditions, privacy policy and disclaimers have been updated.
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