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Litecoin Rally Brewing? Big Wallets Load Up as LTC Technicals Flip Bullish
As the cryptocurrency market continues to exhibit unpredictable patterns, Litecoin (LTC) is bucking the trend with an unprecedented rally. The price of LTC has surged to $98.21, marking its fifth consecutive day of gains. This sudden upswing can be attributed to a significant shift in conviction among investors.
Recent data reveals that major holders, specifically those holding between 1 million and 10 million LTC tokens, have collectively added 360,000 tokens to their portfolios within the period between June 5th and July 11th. This increase in buying activity is likely responsible for the recent stability of the market and ongoing upward trend.
In contrast, wallets holding a lesser amount of LTC (100,000-1 million) have been reducing their positions by an equivalent sum of 140,000 tokens. This significant change in conviction amongst major holders has led many to speculate that large-scale investors may have intervened during the recent downturn in the market, contributing to the current steady price action.
Moreover, the activity in Litecoin derivatives has also suggested growing confidence among traders. Open Interest, a key indicator of market sentiment and speculative capital commitment, surged by an astonishing 8.63% within 24 hours, reaching $745.88 million. The increase in Open Interest indicates that fresh capital is entering the market, as investors become more optimistic about LTC’s prospects.
Favoring long positions, the OI-Weighted Funding Rate has also reached a remarkable 0.0228%. This metric, used to gauge traders’ sentiment and bias, suggests that long positions are currently paying off, which has historically preceded strong upward price action for Litecoin in the past.
The indicators are even more optimistic when analyzing LTC’s technicals. The Relative Strength Index (RSI) is seen at 68, suggesting a powerful upward momentum without entering overbought territory. Additionally, the MACD remains positive following its bullish crossover at the end of June and exhibits green bars on the histogram above the zero line, indicating that the momentum is growing stronger.
It’s worth noting that Litecoin has set its sights on an ambitious target – $107.05, which was a peak in May. If the market continues to follow this trajectory, Litecoin may well reach that level as long as it holds support around $91.78, which aligns with both the 200-day EMA and the 50% Fibonacci retracement drawn from the May high to June low.
Lastly, some traders are projecting even more substantial gains for LTC. Crypto analyst Crypto Patel has shared a possible target of $500 in this current cycle, citing potential resistance around $120-$140 and even as far as $200, $300, and $400 levels before reaching such a massive milestone.
Source: www.crypto-news-flash.com
