Litecoin (LTC) is down after breaking the $100 resistance on April 19th. The token went into the sell zone, which caused the fall of its price by 10%. Since this event, several investors are rushing to position themselves for the purchase on different crypto exchange platforms. Can LTC rebound and rise again thanks to the action of whales and strategic investors.
Whales Buy LTC in Mass: Will Litecoin Rebound?
Litecoin is an open-source blockchain that aims to decentralize and pay for low-cost transactions. The LTC token weathered a tough March before picking up again in early April.
However, the token encountered strong resistance at $100 and suffered an industry-wide correction in the markets. Thus, LTC has fallen by 10% in the last few days.
However, according to data from several crypto exchanges, Litecoin enjoys strong demand from strategic investors, which indicates that its token may rebound soon. It is questionable whether the strong demand for LTC to be purchased by investors and whales will be able to propel LTC into a rally that will take it above $110.
In view of the current market, LTC is in high demand with 385,000 buy orders against only 276,000 sell orders available.
Looking at the graph above, we can see the mismatch between supply and demand for LTC in the market. The overall price distribution of market orders placed on different exchanges shows that investors are willing to buy LTC at a higher price.
This is a bullish signal that could push the price of LTC higher in the coming days.
Whales come in to acquire LTC
According to data from Crypto Whales, the wallet that tracks the balances of investors holding between 100,000 and 1 million LTC in real time, whales buy Litecoin. An important thing to point out is that big investors had been on a selling momentum since January 2023 when LTC hit $90.
However, between April 15 and April 21, whales bought 43,000 LTC tokens, worth around $4 million. This is shown in the following table:
This information means that institutional investors and whales are starting to trust Litecoin again. This is why they are repositioning themselves in order to benefit from the next price increase.
It should also be mentioned that the buying and selling movements of these same whales in particular have had an impact on the price of LTC. If the same pattern emerges, the token should see its price increase in the coming days.
LTC Price Prediction
Litecoin’s latest rally took its price as high as $101 before plummeting. The Crypto’s Upcoming Rally Is Expected to Take Its Price to $112 with regard to the distribution of the holders’ equilibrium prices.
For this objective to be realized, LTC would first have to break through the initial resistance at around $94. It should also be taken into account that the 450,000 addresses holding a total of 3.45 million tokens can decide to sell when the price will balance above the resistance.
LTC has a high chance of reaching $112 if the $94 resistance is broken. When this threshold is reached, LTC will still face a significant sale possibility of 990,000 wallets containing 6 million tokens.
In a bearish scenario, LTC could drop below $86. However, the 641,000 holders owning 8.27 million tokens at this point would not allow this to happen in principle. On the other hand, in case the support level of $86 is broken, the next resistance is $70.