Litecoin has experienced a significant price surge on low timeframes and hints at a possible bullish continuation. The cryptocurrency is moving higher than more significant assets in the space, and it’s making its way to the top 10 by market capitalization.
The current market landscape and on-chain activity support a bullish thesis. As of this writing, Litecoin already overtook Solana (SOL) and Shiba Inu (SHIB) in this ranking. LTC’s price is trading at $78 with 15% and 35% profits in the last 24 hours and the previous week, respectively.
Litecoin On Track For Further Gains?
Data from research firm Santiment indicates that prominent players have accumulated Litecoin over the previous two weeks. These players anticipated the current bullish momentum.
The firm noted that addresses holding from 1,000 to 100,000 Litecoin accumulated over $40 million in the cryptocurrency over this period. Santiment pointed out the following while sharing the chart below:
Litecoin’s price surge may have shocked some of you, but the large address accumulation has been the key to watch. In the past 2 weeks, addresses holding 1k to 100k $LTC accumulated $43.4M in coins en route to the first price jump above $80 since May.
As the chart shows, the Litecoin accumulation trend has lost strength. Large LTC holders might take some profits at current levels before resuming their accumulation pattern.
Additional data from Material Indicators point to substantial support for LTC’s price at $55 to $60. These areas should operate as critical support in case of a retrace.
As seen in the chart below, Material Indicators and Santiment coincide with the buying pressure triggered by investors with bid orders of above $10,000. Retail investors have also been supporting the LTC price rally.
Why Is Litecoin Likely To Trend Higher
Several factors point towards further appreciation for Litecoin. First, the macroeconomic landscape is becoming more favorable for risk-on assets. Inflation in the U.S. dollar is declining, with economic growth following.
This change might give the U.S. Federal Reserve room to pivot its monetary policy, allowing Litecoin, Bitcoin, Ethereum, and the crypto market to record more profits. The possibility of a Fed pivot is still far, but the market conditions are shifting after a long capitulation period for the nascent sector.
In addition, Litecoin has historically operated as a leading indicator for bullish momentum during crypto bear markets. As seen in the chart below, LTC was one of the first digital assets to Bullrun into uncharted territory. Will history repeat?
$LTC is Repeating previous bottom Fractal ✍️
Every bottom there is a consolidation inside a range followed by –
— Mags (@thescalpingpro) November 23, 2022
Credit: Source link