Litecoin worth crossed $94 on March 3, its highest because the widespread post-halving sell-off in August 2023, which has seen LTC underperform the market within the final 6-months.
A widespread post-halving sell-off noticed Litecoin worth dip 37% inside a fortnight of the crucial community occasion. Since then, Litecoin worth has struggled for upward momentum. Bullish strikes noticed amongst LTC whale buyers this week recommend that is about to vary.
Put up-halving sell-off noticed Litecoin worth wrestle for momentum
Litecoin’s most up-to-date halving event went reside on August 2, 2023, lowering the block reward from 12.5 LTC to six.25 LTC.
Within the weeks that adopted, LTC skilled a serious sell-off from miners and institutional buyers, which despatched costs spiraling from $95 on the halving date, to a multi-year low of $58 by Aug. 17.
The crypto sector rally started in mid-October, however the post-halving dearth in demand noticed LTC worth trailing the market, as Litecoin worth remained sandwiched throughout the $70 – $80 vary for the higher a part of the final 6 months.
Nevertheless, current market information means that Bitcon halving might have a reverse impression on LTC worth motion.
Litecoin whale holdings nears 34.4M all-time excessive forward of Bitcoin halving
With the Bitcoin (BTC) halving estimated to go reside on April 19, now lower than 2-months away, rival Proof of Work (PoW) networks together with Bitcoin Money (BCH) and Kaspa (KAS) have all recorded vital development.
This comes amid widespread hypothesis that miners and key stakeholders who discover BTC much less worthwhile could possibly be incentivized to channel their assets in direction of different PoW networks.
On-chain actions noticed amongst LTC institutional buyers this week recommend this bullish outlook might already be in play for LTC worth.
The Santiment chart under represents historic tendencies of balances in whale wallets with a minimal of 100,000 LTC (~$8.5 million). As seen under, the LTC whales entered a promoting spree after the halving, depleting their balances by greater than 1.2 million LTC over the following 5 months.
Nevertheless the pendulum swung in current weeks, because the whales began shopping for once more round Jan 27.
Litecoin surged 28% in a frenetic 48 hour rally between Feb. 29 and March 2. LTC worth lastly reclaimed $95 for the primary time because the halving, earlier than a pointy retracement noticed LTC discover assist on the $85 at press time on March 6.
Whale buyers returning to the Litecoin community are the principle catalysts behind the present LTC worth resurgence.
The chart above illustrates how the whales have acquired 1.7 million LTC between Jan 27 and March 5, bringing their balances to 34.4 million LTC, simply 40,000 shy of their all-time excessive holdings.
On-chain actions from this cohort of whales has confirmed extremely influential on LTC worth actions. Notably, the chart exhibits that following Aug. 2 halving occasion, the whales offloaded a whopping 1.5 million LTC over a interval of 5 months, which conceded with LTC worth falling to a multi-year low, and underperforming amid the market rally.
Nevertheless, as issues stand, the whales have now elevated their holdings to historic ranges, signaling overwhelming bullish conviction that the Bitcoin will impression LTC costs positively.
LTC worth prediction: Can it attain $100 once more?
Valued on the present costs of about $85 per coin, the whales have now invested over $228 million in Litecoin because the shopping for pattern started round Jan. 27. And if the historic patterns are something to go purchase, LTC could possibly be on the verge of one other main worth breakout above $100 because the BTC halving attracts nearer.
However when it comes to short-term worth motion, the higher Bollinger band technical indicator at present highlights the $93 space as the main resistance stage. If the bulls can set up a gentle assist stage above that crucial worth level, a serious breakout above $100 could possibly be on the playing cards as predicted.
On the flip facet, the bulls can depend on the 20-day SMA at $76.3 for preliminary assist, within the occasion of dramatic bearish reversal.
