Litecoin (LTC) price briefly retested the $70 territory on Monday, as the bulls continue to power a recovery from the 2023 bottom of $58 recorded mid-last month. Key on-chain indicators provide data-driven insights into where LTC price could head next.
Litecoin price has underperformed this week despite the growing bullish sentiment in the altcoin markets. Will investors keep doubling down or look toward other altcoins for profits in October?
Whale Investors Cooled Their Trading Activity This Week
Litecoin price has been on a losing streak since the August 2 halving event was completed. But when LTC price hit a new 2023 bottom of $58 on September 12, LTC whales swung into action to prevent historic losses.
As such, the IntoTheBlock chart below illustrates how LTC Whale Transactions had increased from 1,800 transactions on September 10 to hit a 40-day peak of 2,900 transactions last Friday.
But notably, since then, the whales have dialed down their trading activity significantly. The chart shows only 2,040 whale trades on October 4, down 30% from September 29.
The large transactions metric is a snapshot of the total number of confirmed trades that exceed the $100,000 mark. Such a sharp drop in the number of whale transactions, as observed above, typically lowers market liquidity and impacts the asset’s price negatively.
Considering the prevailing bullish sentiment in the broader altcoin market, it could imply that the whales are looking beyond LTC, potentially seeking more profitable opportunities.
If this phenomenon is proven, LTC could remain rooted below $70, even as other altcoins continue to score significant gains.
As The Bull Market Matures, Investors are Looking to Trade LTC
The current bullish sentiment surrounding the global crypto markets encourages holders to sell LTC.
The Exchange Order Books chart, which shows the price distribution of current active Litecoin orders, also confirms this position. As depicted below, there are currently sell orders for 1.6 million LTC around the current prices.
And this is considerably higher than the 1.5 million LTC buy orders put forward by the bulls.
The Exchange On-chain Market Depth chart depicts the current volume of active Litecoin spot market orders placed across recognized cryptocurrency exchanges.
As seen above, the market supply for LTC has now exceeded demand by more than 100,000 coins. This suggests that more bearish traders are looking to sell around the current prices than those looking to buy.
Unless this trend reverses Litecoin could continue to struggle to break the $70 line.
LTC Price Prediction: Possible Reversal Below $60
The lack of movement in Litecoin prices could evolve into a prolonged bearish reversal below $60 in the coming weeks. The In/Out of Money Around Price data, which depicts the entry price distribution of the current Litecoin holders, also supports this prediction.
It, however, highlights that the bears will face a considerable obstacle around the $65 territory.
As shown below, the 775,030 LTC holders had bought 6.92 million coins at an average price of $63. If they defend their positions, they could trigger a rapid LTC price rebound.
But if the whales remain neutral, Litecoin price could eventually wobble below the $60 support level, as predicted.
Conversely, the bulls could invalidate that pessimistic Litecoin price prediction by reclaiming $75. However, 105,000 addresses had bought 8.05 million LTC at the minimum price of $68. If LTC holders keep selling, that resistance level could prove daunting.
Although unlikely under the current on-chain circumstances, Litecoin’s price could eventually hit $75 if that resistance folds.
In line with the Trust Project guidelines, this price analysis article is for informational purposes only and should not be considered financial or investment advice. BeInCrypto is committed to accurate, unbiased reporting, but market conditions are subject to change without notice. Always conduct your own research and consult with a professional before making any financial decisions.