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- Litecoin dropped over 40% in December but has shown signs of recovery in January.
- Whale activity increased, with large holders buying during the dip, signaling bullish momentum.
- Rising trading volume and positive funding rates suggest further growth for Litecoin in 2025.
Litecoin— LTC, made a strong recovery after a rough December. The cryptocurrency dropped over 40%, but now, things are looking better. Will Litecoin maintain this bullish momentum going into 2025? Recent whale activity suggests big things are on the horizon. Let’s dive into what’s happening with Litecoin and what could come next.
$LTC
— CJ Bennett (@the_real_CJ) January 2, 2025
Seeing these same setups all across the market. Either a flag, wedge, or downward channel with a local bottom printing near the end of the structure, as well as a squeeze etc. Litecoin is looking ready to blow here too.
Currently retesting the 50D SMA, which just so… pic.twitter.com/RxGSVTo8nS
Litecoin’s Struggles and Recent Bounce Back
In December 2024, Litecoin faced a tough month, falling from $147 to $86.69. This sharp decline was about a 40.75% drop. But recently, Litecoin has been consolidating between $96 and $105. This range falls within the 0.5 and 0.618 Fibonacci levels— key areas for price retracements.
At the time of writing, Litecoin was trading at $105.85, showing signs of life after four days of positive price action. Although the price still needs to rise by 38% to hit the December high, the recovery signals a potential bullish move.
Whale Activity Driving Litecoin’s Recovery
Whales have played a big role in the recent rebound. On-chain data shows they’ve been scooping up Litecoin during the dip. At the start of December, whales held about 7.44 million LTC. By the end of the month, that number grew to 9.06 million LTC.
This shows a growing interest from large holders.In addition to whale activity, trading volume has increased. Over the last 24 hours, volume rose by 11.40%, reaching $596.94 million. Open Interest also saw a 2.12% increase, further indicating healthy market interest.
As January unfolds, Litecoin’s future looks promising. Whale buying, rising trading volume, and positive funding rates point toward more bullish movement. If Litecoin can maintain this trend, it might be on track to reach new highs and revisit December’s peak.