Litecoin (LTC) continues to draw attention with a 14% increase, trading around $117 after several days of continuous growth. The recent price rally aligns with the overall trend of the crypto market and increasingly evident signs of an upcoming altcoin season.
However, despite the optimism, the strong activity of whale investors threatens to weaken this upward trend. Large holders are taking profits, and this move could challenge Litecoin's ability to sustain its rally.
Support may be weakening
According to data from Santiment, in the past 5 days, whale wallets holding between 100,000 and 1 million LTC have sold more than 500,000 tokens, equivalent to about 58 million USD, indicating the cautious sentiment of large investors. This action implies that they may be skeptical about the sustainability of the current rally.
Sudden selling pressure surges signal potential instability in the future. Large volume trades often affect market trends due to their impact on liquidity.
If the sell-off continues at this pace, retail sentiment may shift to pessimism, increasing pressure on Litecoin's short-term performance.
Despite the whale sell-off, online data from the Mean Coin Age (MCA) indicator shows a different story. Long-term holders (LTH) are demonstrating resilience, choosing not to sell off their holdings, a positive sign for price stability.
LTH often indicates medium to long-term trends, and their limited participation in the recent sell-off shows confidence in Litecoin's outlook, providing the support this altcoin needs to withstand downward pressure and potentially stabilize its price at current levels.
LTC needs to break through a key resistance level
At the time of writing, Litecoin (LTC) is trading around the resistance level of $117. Although the price has risen 14% in the past 24 hours, the whale sell-off could create resistance. LTC needs strong momentum to overcome the upper barrier and maintain its upward trend.
If the pessimistic sentiment due to increased whale activity persists, the price could return to $105. This level serves as a critical support threshold and could become a foundation for consolidation if selling pressure continues.
Conversely, continuous support from buyers and LTH could help LTC surpass the $117 mark. Breaking this resistance level would signal strength and open opportunities for upward momentum towards $124, marking a new 4-month peak and confirming the bullish trend.
