Is Litecoin Entering a Price Revival Phase? Social Interaction Could Be the Key Factor!
The recent developments in Litecoin have sparked intrigue, especially due to the significant increase in its social engagement in the past few days. Alongside this rise, noticeable bullish movements were observed in its price. But the question remains: can this positive momentum be sustained for the long haul?
The surge in Litecoin’s social interactions was clearly reflected in its social metrics. Notably, its X (Twitter) account had been witnessing a decline in followers for the past 6 months. However, the trend reversed earlier this month, with the number of followers showing an uptick once again.
Since the second week of October, there has been a consistent uptrend in the number of followers, indicating a renewed interest in the cryptocurrency. This uptick could signify a growing demand for LTC in the market.
From a pricing perspective, Litecoin has had a promising week in the altcoin market. Currently valued at $75.32, the coin has surged by 17% from its weekly low. Consequently, Litecoin emerged as one of the top gainers in the market over the past week.
Litecoin Whales Accumulating More Coins
Analysis of on-chain data reveals that large holders have been increasing their LTC holdings consistently.
For instance, there was a notable spike in large holder inflows from 175,630 LTC on October 13 to 438,700 LTC on October 16. This spike coincided with Litecoin’s price surge during the same period.
Conversely, large holder outflows also saw a significant rise from 95,480 LTC on October 13 to 202,180 LTC on October 14.
These movements suggest that there were twice as many inflows into large holder addresses compared to outflows, indicating aggressive accumulation of Litecoin by whales.
Can Litecoin maintain its current momentum? Recent on-chain data indicates a substantial increase in both buy and sell volumes from October 12, peaking on October 15. However, both buy and sell volumes have since decreased.
Overall, the volume data suggests that the initial surge in volumes that triggered the current rally has decreased. This scenario may imply a potential increase in selling pressure in the days ahead.
Furthermore, Litecoin encountered resistance at the $76 price level, signaling a possible scenario of profit-taking and a subsequent retracement on the charts.