Litecoin price plunged 5.7% in the last 24-hours as short-term traders capitalized on the hype surrounding altcoin ETFs to book profit. Technical indicators suggest bulls could trigger an early recovery phase.
Litecoin (LTC) Tumbles 5% as Traders Book Profits on Altcoin ETF Hype
Litecoin (LTC) was among last week’s top-performing assets, but a sell-the-news event has triggered a notable pullback. While inflation concerns capped gains in Bitcoin (BTC) and Ethereum (ETH), which hovered around $97,000 and $2,700 respectively, Litecoin rode bullish sentiment as the U.S. SEC acknowledged fresh ETF filings for DOGE and XRP by Grayscale and 21Shares.
LTC price soared to a 30-day peak of $137 on February 13 before retreating sharply to $126.4 at press time, marking a 5.7% decline within 24 hours. This decline aligns with a classic profit-booking scenario, where traders cash in on gains following a major announcement.
However, with no deterioration in network fundamentals or major negative press, bullish investors could take advantage of this correction. If LTC stabilizes above $120, new entrants may seize the dip, mitigating further downside risks and setting the stage for a rebound.
Litecoin Whale Demand Surges After SEC Acknowledged DOGE and XRP Filings
Beyond short-term volatility, Litecoin’s whale accumulation patterns suggest a potential price recovery. A key metric reinforcing this view is IntoTheBlock‘s Average Transaction Size, which tracks the average dollar value of transactions on the Litecoin network, providing insight into whale activity.
Data from IntoTheBlock shows that on February 8, LTC’s average transaction size fell to a monthly low of $45,190. However, following the SEC’s acknowledgment of DOGE and XRP ETF applications, this figure rebounded to $54,000 as of February 15. This increase suggests that deep-pocketed investors are accumulating LTC despite recent price declines.
Whale accumulation typically signals confidence in long-term price appreciation. As more institutional players enter the altcoin space due to ETF speculation, LTC could benefit from heightened liquidity and a renewed uptrend.
Litecoin (LTC) Price Forecast: Bullish Momentum Alive if $120 Support Holds
Litecoin price forecast indicates that the $120 support level will be critical in determining the next move. If LTC maintains this level, bullish momentum could resume, potentially retesting $130 in the coming days. A successful breakout above this resistance may pave the way for another attempt at $137, the recent high.
Technical indicators paint a mixed picture. The MACD histogram has flipped into negative territory, suggesting slowing momentum, but the declining selling pressure could allow for a swift recovery. Additionally, Keltner Channel analysis shows LTC consolidating within a tightening range, a potential precursor to volatility expansion.
If bears breach $120, LTC could drop to the next key support at $117, where buyers may step in again. However, if whales continue accumulating, the path of least resistance remains upward, reinforcing the bullish outlook.
The post Litecoin Price Analysis: DOGE and XRP ETF Hype Sparks 16% Surge in LTC Whale Demand appeared first on CoinGape.
