The market witnessed a comeback in volatility this week, with Bitcoin (BTC) surpassing the $37,000 mark. Yet, many prominent altcoins didn’t fully benefit from this upswing. Among these, Litecoin (LTC) remains a notable example, hovering around the $70 level, despite an improvement in its on-chain metrics. Nonetheless, with declining interest from whales, Litecoin faces the risk of a downward trend if it doesn’t meet buyers’ demand.
Litecoin Loses Support From Whales
Over the past day, Litecoin’s (LTC) value experienced significant fluctuations. It initially faced resistance near $72, leading to a sharp decrease. The upcoming Federal Open Market Committee (FOMC) meeting has added to the bearish sentiment surrounding LTC, especially after losing support from whales.
According to Coinglass, there was a long liquidation exceeding $1.3 million, indicating that the market movement did not favor those anticipating a price rise. Moreover, the cryptocurrency market faced a downturn following announcements of imminent enforcement actions by the Department of Justice (DOJ) against the crypto sector, scheduled for 3 pm Eastern Time today. This development contributed to Litecoin’s price settling within a bearish zone.
Data from IntoTheBlock indicates a recent decrease in whale transactions, with values falling from $1.89 billion to $1.54 billion over the past several days, though a minor recovery was noted today. Interestingly, a majority of Litecoin holders are currently facing losses, with about 64% of them in the red. In contrast, only 30% of holders, representing approximately 2.8 million addresses, are seeing profits, while 6% are at a break-even point, experiencing neither gains nor losses.
This rising loss-making addresses could lead to impatience among these holders, particularly if LTC’s price begins to rise. Consequently, an upward price movement might prompt increased selling activity as these holders seek to minimize their losses.
What’s Next For LTC Price?
Litecoin recently dipped below EMA trend lines as buyers lost momentum at $72. However, the downward momentum didn’t continue to the next support level as buyers bought aggressively near the low of $67. As of writing, LTC price trades at $69.4, declining over 1.2% from yesterday’s rate.
Currently, LTC is trading within a consolidated zone as it failed to bring significant volatility in recent weeks. A push by buyers to maintain the price above $77 could signal the start of a relief rally, potentially leading the LTC price to rise towards $85. However, this level might face significant bearish domination.
A bearish movement is expected if there’s a drop below $65. If buyers fail to trigger a buying demand near this level, LTC prices might decline steeply, potentially targeting monthly support lines. In such a situation, Litecoin price might retest its strong support of $57; however, this level will likely be defended by buyers.