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Layer-1 coin Litecoin has emerged as the market’s top gainer over the past 24 hours, bucking the prevailing downtrend seen in the broader cryptocurrency market.
The 10% rally comes amid a notable increase in whale accumulation, with large investors gradually building their positions over the past week. With a growing bullish bias, $LTC appears poised to extend its current gains.
Litecoin Whales Increase Holdings
On-chain data reveals that $LTC has seen a triple-digit surge in its large holders’ netflow over the past week. According to IntoTheBlock, this has climbed by 103% during that period.
Large holders refer to whale addresses that hold over 0.1% of an asset’s circulating supply. Their netflow measures the difference between the coins these investors buy and the amount they sell over a specific period.
When an asset experiences a spike in large holder netflow, its whale addresses are increasing their holdings. This is a bullish signal, typically driving upward price momentum as these big investors bet on the asset’s future growth.
Retail investors often follow this trend, seeing the increased whale activity as a sign of confidence. As whales accumulate, the rising demand could push $LTC’s price higher, creating a positive feedback loop in the market.
Further, the coin’s Relative Strength Index (RSI), assessed on the daily chart, confirms the surge in demand. At press time, $LTC’s RSI is at 54.08 and is on an upward trend.
This momentum indicator measures an asset’s overbought and oversold market conditions. It ranges between 0 and 100, with values above 70 indicating that the asset is overbought and due for a correction. Conversely, values under 30 suggest that the asset is oversold and may witness a rebound.
At 54.08 and climbing, $LTC’s RSI suggests a moderate bullish momentum. It indicates growing buying pressure with the potential for further upward movement if the trend continues.
$LTC Price Prediction: Could $124 Be Next?
$LTC’s Elder-Ray Index has posted a positive value for the first time in eight days, highlighting the bullish shift in market trends. At press time, it is at 4.26.
An asset’s Elder-Ray Index measures the relationship between its buying and selling pressure in a market. When the index is positive, it indicates that bullish momentum is dominant, suggesting that buyers are in control and the asset’s price is likely to continue increasing.
If this holds, $LTC’s value could rocket above $120 to trade at $124.03.
However, if profit-taking resurfaces, $LTC’s price could shed current gains and drop to $109.81.