Litecoin Whale Accumulation Surges, LTC Price Breakout Above $100 Imminent?

7Ary...USep

20 May 2024

Recent Litecoin whale activity, including $80 million in fresh purchases over a week, hints at a potential breakout of LTC price towards $100.

HIGHLIGHTS

Over the past month, these large investors have amassed over 2.75 million LTC.
The recent whale activity hints at a potential breakout of LTC price towards $100.
Hedging strategies by short traders could facilitate a breakout beyond $85.9,

Despite the volatility over the last month, Litecoin whales have been scooping up the LTC supply thereby forming a solid basis for its price rally ahead. As of press time, the Litecoin (LTC) price is trading 1.2% up at $83.51 with a market cap of $6.22 billion.

Litecoin Whale Accumulation

Recent on-chain data analysis by IntoTheBlock sheds light on Litecoin’s price performance, which has remained relatively stagnant during the first half of May 2024. However, a notable trend has emerged as crypto whale investors engage in significant LTC accumulation this week, potentially positioning themselves ahead of an anticipated price breakout.
Over the past 30 days, Litecoin whales have accumulated a substantial 2,751,633 LTC, signaling a bullish sentiment within this investor segment. Notably, on May 10th, these addresses witnessed a net inflow of over 900k LTC, marking the highest daily accumulation since February.

This surge in whale activity suggests a proactive strategy to capitalize on a potential uptick in Litecoin’s value, indicating growing optimism within the market regarding the cryptocurrency’s future trajectory.

LTC Price Action to Catch-up?

Since the beginning of May 2024, Litecoin’s price has remained stagnant, with bullish attempts to surpass the $86 resistance proving futile. Despite positive indicators such as lower-than-expected inflation in the recent US CPI data, investor interest in LTC has remained tepid this week.
However, recent whale activity, involving fresh purchases totaling $80 million over the past week, suggests a potential breakout for Litecoin towards the $100 mark in the coming days.
Yet, derivative market signals indicate a significant hurdle for LTC bulls near the $86 level. Data from Coinglass’ Liquidation heatmap reveals that bearish traders could face substantial losses, exceeding $5.8 million on leveraged SHORT contracts if Litecoin’s price exceeds $85.9.

In response, Short traders may opt to reduce their positions or implement stop-loss mechanisms as the price approaches $85.9, potentially intensifying selling pressure on LTC in the short term.
Nevertheless, if short traders hedge their positions with LONG spot purchases, Litecoin’s price could have a strong chance of breaking through the $85.9 resistance and advancing towards $100, as previously forecasted.

Gold and Silver Hit New Record Highs, Will BTC Catch Up Soon?

Bitcoin could soon join the broader commodity market rally in Gold and Silver as the digital gold now trades on Wall Street in the form of spot Bitcoin ETFs.

HIGHLIGHTS

Geopolitical uncertainty push Gold price closer to $2,500 per ounce.
Silver price gives a 11-year breakout eyeing an additional 50% gains ahead.
Bitcoin can play catch up soon as it's now formally regulated product trading on Wall Street.

There’s a strong rally in the commodities market with precious metals like Gold and Silver hitting new record highs recently. Gold is grabbing all the limelight in the global financial market, hitting a new all-time high against the USD. As a result, market analysts are keeping a close watch on Digital Gold aka Bitcoin.
Earlier today on Monday, the Gold price rallied to $2,450 per ounce fueled by the ongoing geopolitical developments in Iran and the likelihood of a dovish move by the Fed on interest rates. Another factor driving gold prices is the sustained demand from central banks, contributing to a 30% increase in gold prices this year.

Silver Gives An 11-Year Breakout

Silver (SILVER) remains in the spotlight on Monday as it surged to an 11-year peak surpassing the significant psychological threshold of $30. This rise is attributed to its safe-haven properties, the weakening U.S. dollar, and its industrial utility.
Investors are driving up silver prices, along with other precious metals, seeking assets to hedge against ongoing geopolitical uncertainties.
Looking ahead, silver stands to gain from increasing industrial demand. The Silver Institute’s World Silver Survey report projected a 9% rise in industrial demand this year, fueled by the growing use of silver in renewable energy applications.
In the longer term, investors should monitor a potential move towards the $35 mark. This area may pose resistance due to a key multi-year horizontal line from notable swing highs in 2011 and 2012. A decisive breakout above this level could lead to a retest of the record high at $47.71 set in April 2011.

Will Bitcoin (BTC) Catch Up soon?

Amid the recent silver price rally, the commodity has widened its gap with Bitcoin. Bitcoin is still $500 billion away in order to catch up to Silver’s $1.8 trillion valuation and become the eighth largest global commodity. For the flipping to happen, the Bitcoin price should cross $93,000 provided silver remains stable by that time.
Bitcoin analyst Dylan LeClair previously highlighted that Bitcoin often doubles within months of hitting new highs, especially around halving events.
Galaxy Digital founder and CEO Mike Novogratz predicts that Bitcoin will remain in a “consolidation phase” between $55,000 and $75,000 over the next month, with potential for an increase towards the end of the second quarter.
Traditional markets are hitting new all-time highs, and gold and silver are performing exceptionally well. It’s evident that securing inflation protection has become crucial.
Bitcoin has emerged as a key player. Arguments about its legitimacy are no longer valid, as it is now fully regulated and tradable on Wall Street, says analyst.