After touching a recent low of $64, Litecoin [LTC] has been steadily climbing, reaching a peak of $98. Over the last month, LTC has surged by 20.42%, now trading at $89 at the time of this article.
These significant gains have put many holders in a profitable position, leading analysts to speculate on the future price movements of this altcoin.
More than 60% of LTC holders currently seeing gains
Information from IntoTheBlock reveals that 65.39% of LTC holders are currently in profit, marking the highest number of profitable holders seen since April.
On the other hand, 26.72% or 2.14 million addresses are in a loss position, while 7.89% remain at breakeven.
When a large percentage of holders are in profit, there is a risk of profit-taking behavior that may result in downward pressure on prices. IntoTheBlock analysis notes that many of the holders who are currently at breakeven bought in 2021 and might opt to sell once they reach a profit status.
It’s worth noting that during the bullish cycles of 2021, LTC reached highs of $413 in May and $302 in November.
Despite the recent surge in Litecoin’s price, it is still about 78% lower than its highest point in 2021. This means that for these holders to break even, LTC needs to reach the levels seen in 2021, a scenario that seems unlikely at the moment.
Impact on LTC’s price trend
While the insights from IntoTheBlock paint a positive picture for Litecoin, it is crucial to cross-verify with other market signals.
Currently, LTC is experiencing a strong upward momentum, indicating a potential push towards recent highs.
Observing Litecoin’s MACD, it can be seen that the MACD line crossed above its signal line two weeks ago, signaling a bullish trend.
Additionally, with buyers driving the market, the involvement of large holders or whales is notable. The netflow ratio of Litecoin’s large holders has dropped from 5.8% to 1.01% in the past week.
The reduced number of transfers to exchanges by major holders reflects their belief in the ongoing uptrend, further boosting the bullish momentum.
Consequently, the recent surge in large transactions suggests an accumulation of LTC by whales.
What lies ahead?
In summary, while LTC is currently riding a strong upward trend, the 2021 holders might not pose significant resistance, especially in the short run.
With buyers in control, Litecoin is currently in a bullish phase. These circumstances could pave the way for further price appreciation on the charts.
Therefore, if the current favorable conditions persist, LTC is expected to reclaim the $98 level. A breakout beyond that point could propel LTC towards the $105 mark.