The layer-1 coin Litecoin has made a splash as the top gainer in the market within the last 24 hours, defying the downtrend in the broader cryptocurrency market.
Amid a surge in whale accumulation, with significant investors steadily increasing their holdings over the past week, Litecoin has surged by 10%. With a bullish momentum building, LTC seems poised for more gains.
Litecoin Whales Boost Holdings
Recent on-chain data shows a massive surge of over 100% in netflow from large holders of LTC in the past week. This increase, as reported by IntoTheBlock, signifies a strong uptrend.
Large holders are addresses holding over 0.1% of an asset’s circulating supply. The netflow observes the difference between what these investors buy and sell during a specific period.
When an asset sees a rise in large holder netflow, it implies that whale addresses are increasing their positions, acting as a positive signal that can drive the price momentum upwards as these major players show confidence in the asset's growth.
Retail investors often follow suit, seeing increased whale activity as a vote of confidence. With whales accumulating, the heightened demand might push LTC's price up, setting off a cycle of positive market feedback.
Moreover, the Relative Strength Index (RSI) for Litecoin, evaluated on a daily chart, confirms the surge in demand. Currently standing at 54.08 and trending upward, LTC’s RSI indicates a moderately bullish momentum.
The RSI, a momentum indicator, shows an asset's market conditions regarding overbought and oversold levels. Values above 70 suggest overbought conditions and a potential correction, while under 30 suggests oversold conditions and a likely rebound.
With LTC's RSI climbing at 54.08, there is a sign of growing buying pressure and the potential for more upward movement if the trend persists.
LTC Price Forecast: Is $124 On the Horizon?
The Elder-Ray Index for LTC has turned positive after eight days, signaling a bullish trend shift in the market, currently at 4.26.
This index measures the balance between buying and selling pressure in a market. A positive index indicates bullish momentum, suggesting that buyers are driving the asset's price higher.
If this trend holds, Litecoin's value might surge beyond $120 and touch $124.03. However, if profit-taking kicks in, LTC's price could retreat to $109.81.