Litecoin [LTC] is currently in the midst of a bullish recovery, following a downward trend in December. The recent surge in price could potentially lead to a significant rally, driven in part by increased activity among large cryptocurrency holders.
During December, LTC experienced a notable drop from its peak of $147 to a low of $86.69, marking a decline of approximately 40.75%.
Despite this downward movement, the price has since stabilized within the range of $96 to $105, falling within the 0.5 to 0.618 Fibonacci range during the pullback.
As of the time of writing, Litecoin is priced at $105.85, having shown positive growth over the past four days. The question now arises: can Litecoin surpass its previous highs in 2024?
To reach the December peak, Litecoin would need to advance by more than 38%. While this may seem like a significant leap, the recent interest from large holders suggests that such a rally is within the realm of possibility.
LTC Gains Favor with Large Holders
An analysis of Litecoin’s on-chain data indicates that whales have been actively accumulating LTC during the recent price dip. At the beginning of December, whale holders collectively owned around 7.44 million LTC, which accounted for 9.79% of the total supply.
By the end of December, whale balances had increased to 9.06 million LTC, representing 11.91% of the total supply.
During the same period, the investor category experienced a slight decrease in holdings, falling from 29.8 million LTC to 28.31 million LTC. Retail investors, on the other hand, saw a marginal increase from 38.64 million coins to 38.67 million coins.
The flow of funds from large holders also saw a significant uptick towards the end of the year, with inflows surpassing outflows by a wide margin. This trend suggests that whales played a key role in driving the recent bullish momentum in the Litecoin market.
The strong demand for Litecoin bodes well for a potentially bullish start to January, offering insights into the cryptocurrency’s outlook for 2025.
Further affirming the positive sentiment, the derivatives market showed healthy activity, with an increase in positive LTC Funding Rates over the past three days.
Trading volume surged by 11.40% to $596.94 million in the last 24 hours, signaling a renewed interest in Litecoin. This uptick was accompanied by a 2.12% rise in Open Interest to $439.10 million.
The recent developments surrounding LTC suggest a promising beginning to 2025, setting the stage for a possible uptrend in the near future.