Crypto traders are still counting losses after the recent market crash that pushed Bitcoin and most altcoins to multi-month lows. Litecoin (LTC) price was affected by this downtrend and plunged to a two-week low. While it has since made a recovery, bearish headwinds continue to weigh on LTC. However, despite the uncertainty, Litecoin whales have bought $130M LTC. Does this whale purchase suggest that Litecoin is on the verge of a breakout?
Litecoin price today trades at $121 after an impressive 10% rally in 24 hours.
Litecoin Whales Accumulate $130M LTC as Price Flatlines
Litecoin whales are accumulating LTC tokens after the recent crash in Bitcoin and altcoin prices. According to analyst MAXPAIN, the recent whale purchase of $130M mirrors past LTC whale accumulation patterns where these traders buy when the prices are low and sell when the price hits a peak again.
The recent $130M purchase suggests that a parabolic Litecoin rally may be on the horizon because of demand from these large addresses. If this demand is met with renewed optimism from retail traders, it could aid a Litecoin price breakout.
Is Litecoin on the Verge of a Breakout to $300?
Litecoin price has faced three consecutive rejections from the resistance level of $140. Despite these rejections, the price has successfully defended support at $110, suggesting that the altcoin is trading with a horizontal consolidation range.
According to analyst Tyler on X, Litecoin can make a rally past $230 if it can flip the critical resistance level. After the recent downtrend, LTC has again bounced from this support and is now targeting this resistance.
Another analyst, Crypto Poseidon, also identified a bullish setup on a higher timeframe that supports a bullish Litecoin price forecast and a breakout to $300. This is after LTC flipped resistance into support, suggesting a strong bullish trend.
Litecoin Price Analysis
Litecoin’s one-hour chart shows a healthy and strong recovery in LTC price after the recent downtrend. The price has entered an ascending parallel channel, indicating that bulls have the upper hand and the bullish leg may continue.
The Relative Strength Index (RSI) has also surged to 64, indicating that the momentum is bullish. The metric is making higher highs, showing that the short-term buying activity is also increasing. The Moving Average Convergence Divergence (MACD) line has flipped positive, further reinforcing the bullish thesis, while the green MACD histogram bars also indicate that the buying pressure is rising.
If these bullish trends continue, Litecoin price may rally towards the next resistance levels at $130 and $140. The accumulation of LTC tokens by whales could aid a short-term rally to these target levels.
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