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- LTC showed some signs of renewed short term interest as whale activity surged following limited sell pressure
- Altcoin could be ready for another attempt at breaking the resistance near the $134 price level
Litecoin (LTC), the silver to Bitcoin’s gold, had a good run in November and the first week of December. However, it has since cooled down, bringing back uncertainty about its next move. Nevertheless, social sentiment around the coin has maintained decent levels and this may offer us some crucial insights.
The altcoin’s bullish performance has been backed by rising social mentions over the last few months. In fact, this was even before the cryptocurrency embarked on November’s rally. Social activity confirmed renewed interest and encouraged more investors to jump onto Litecoin’s hype train.
According to the latest datasets, the altcoin’s social sentiment has been improving after pulling back since mid-November. This seemed to suggest that the cryptocurrency could potentially be building momentum on the charts.
At press time, Litecoin-related whale activity appeared to be in line with the recovering social sentiment too. Large holder flows revealed that whales added more to their balances at in mid-December. In fact, large holder inflows bounced from 221,370 LTC on 15 December to 600,630 LTC the next day.
Source: IntoTheBlock
On the contrary, large holder outflows were almost half during mid-month at 128,370 coins and rose to 216,110 coins, as of 16 December. This meant that the inflows were over 3 times higher.
Are LTC bulls preparing for another rally?
The mid-week resurgence in whale accumulation could signal renewed interest. Here, it’s worth noting that the price previously dipped considerably in the second week of December, followed by a rapid recovery. This suggested that LTC could still attract heavy demand, even at its press time level.
However, the real question is whether this fresh whale activity can push the price above the recent resistance at $134. This was a noteworthy level because it was a retest of a previous long-term resistance level.
Source: Tradingview
LTC’s limited downside, improving social sentiment and sustained interest are a favorable sign for LTC. Especially as 2025 comes around.
Address data also confirmed sustained long-term interest in the coin. However, short-term performance revealed that a significant number of holders leaned towards profit-taking recently.
Total addresses with balances dipped over the last 3 months from 8.18 million addresses on 18 October to 7.99 million addresses, at the time of writing. This coincided with a hike in total addresses with zero balance from 311.05 million addresses to 326.28 million addresses.
Source: IntoTheBlock
Despite the recent outflows, the long term performance in terms of address growth has remained positive. Total addresses grew from 250.28 million towards the start of 2024 to 334.27 million at press time.