In a trading environment where a bearish outlook has taken center stage, leading to heavy asset liquidation every hour, Litecoin (LTC) is capturing attention for all the right reasons. As traders prepare for another wave of selling pressure following tomorrow’s highly awaited court approval that will enable FTX to offload its $3.4 billion in cryptocurrency holdings, Litecoin flashes promising signs. The LTC price is signaling a potential bullish reversal, backed by encouraging on-chain data.
Litecoin’s Long-Term Holders Gain Confidence
The altcoin market is currently facing concerns of a significant selloff starting tomorrow if FTX gets court approval to liquidate its crypto stash. However, LTC price has been on a recovery trend after breaking below the crucial support of $60.
The health and demand of the LTC token have been bullish, as revealed by IntoTheBlock’s data. The long-term holders are bullish on Litecoin’s future trajectory as the addresses holding Litecoin above one year have touched an all-time high. The metric has been surging exponentially since June, and it has now touched the 5.02 million mark.
The number of addresses has grown by 602,000 since Litecoin’s 2023 peak price of $114.5 on July 2. In the same timeframe, these addresses have also seen a rise in their Litecoin holdings by 3.2 million LTC.
This suggests that even amidst the declining price, a significant number of current network users continue to have faith in Litecoin’s long-term potential.
Moreover, whales with Litecoin balances ranging from 10,000 to 100 million LTC are displaying signs of optimism. According to data from Santiment, these large holders have paused their week-long selling spree and bought 40,000 LTC in the price dip in the past two days. At the current price of around $60 per coin, these new purchases amount to an estimated value of $2.4 million.
What’s Next For LTC Price?
Litecoin price witnessed a rebound in the last few hours as buyers created a buying sentiment near the dip of $57. LTC price surged toward the 20-day Exponential Moving Average (EMA) at $60.8 but failed to break through, indicating strong resistance from bearish traders at this level. As of writing, LTC price is trading at $60.48, surging over 1.8% from yesterday’s rate.
As bears failed to breach the key support level at $53, it suggests that sell-off pressure fades at these lower prices. The Relative Strength Index (RSI) appears to be forming a positive divergence as it heads toward the midline, signaling weakening selling momentum.
A significant bullish indicator would be a successful break and closing above the 20-day EMA, paving the way for a more robust recovery toward $65. Further surge might take the price toward $76.
Conversely, if the support at $53 gives way, the LTC price could enter a downward trajectory. In this case, we might see the price dropping to the crucial $47 level.