Litecoin has experienced an eventful week, driven predominantly by a surge in social engagement in recent days. While this uptick coincided with notable bullish market activity, the question remains: can the digital currency sustain this positive trend over the long haul?
The spike in social interaction surrounding Litecoin was palpable in various metrics, with its X (Twitter) account witnessing a turnaround in follower growth over the past six months. The number of followers, which had been on a downward trajectory, reversed course earlier this month and began to rise once more.
Since the second week of October, the follower count has shown a consistent increase, signaling a revitalized interest in the cryptocurrency. This uptick may be seen as a precursor to a surge in demand for LTC across different sectors.
Accumulation by Litecoin Whales
Insights from on-chain data indicate that significant holder accounts have been steadily accumulating Litecoin in recent times.
For instance, there was a notable rise in large holder inflows, from 175,630 LTC on October 13 to 438,700 LTC on October 16, aligning with a period of price upsurge for the cryptocurrency.
Conversely, outflows from large holder addresses also experienced a substantial increase, jumping from 95,480 LTC on October 13 to 202,180 LTC on October 14.
This data reveals that inflows into major holder addresses exceeded outflows by a ratio of 2:1, indicating an aggressive accumulation of Litecoin by whales.
With regards to sustaining its current momentum, on-chain analysis points to a significant surge in both buying and selling volumes from October 12, peaking on October 15. However, subsequent data shows a decline in both metrics since then.
Collectively, the trading volume patterns hint at a drop from the initial surge that initiated the recent rally, potentially foreshadowing increased selling pressure in the near future.
Furthermore, Litecoin recently encountered resistance at the $76 price level, which could trigger profit-taking behaviors and a potential retreat in market value.