Litecoin (LTC) price has returned to $65 after a brief drop last week. Key on-chain metrics hint that early recovery signals could develop into an extended bullish rally.
Last week, whales actively bought Litecoin, which led to a 12% rebound to $66. However, as the next meeting of the Federal Open Market Committee (FOMC) approaches, they have eased the pressure on the price. Using on-chain metrics, we figure out which direction LTC will go after the Fed rate is announced on September 20.
Litecoin whales have taken a wait-and-see approach
Last week, whales actively bought up the decline in Litecoin. However, ahead of the upcoming Fed meeting, they seem to be taking a wait-and-see approach.
Analytics platform data Saintly show that between September 10 and 14, addresses with balances between 10,000 and 1 million LTC played a key role in the recent price rebound, adding 510,000 coins to their holdings. However, after that the sales pressure subsided.
Source: Saintly
Notably, this cohort of investors is known to be sensitive to changes in interest rates set by central banks such as the US Federal Reserve. If the Fed cuts rates or leaves them at the current level of 5.50%, as economists expect, it could trigger a bullish market reaction.
Retail investors are staying away from LTC
Despite the recent 12% jump in price, LTC continues to fly under the radar of retail market participants. As shown in the graph below, the indicator Social Dominance over the last week has not changed and measured in the range of 0.60% – 0.70%.
Source: Saintly
Metrics Social Dominance measures the percentage of cryptocurrency mentions on social networks relative to the 50 most discussed projects. Its decline during the price rally means that the asset is not yet attracting much attention from retail market participants. Thus, Litecoin still has significant room for growth.
Litecoin Price Prediction: $80 Looks Achievable Goal
If the upcoming Fed meeting turns out to be favorable for the crypto market, whales could trigger another Litecoin rally to the $80 area.
Data In/Out of Money Around Price, reflecting the distribution of entry prices into positions of current LTC holders, confirm this forecast. The 168,020 addresses that purchased 1 million tokens at the maximum price of $68 represent significant resistance. However, if whale optimism increases, Litecoin has a good chance of reaching $81.
Source: IntoTheBlock
If it falls below $60, the initiative will pass to the bears. The 623,820 wallets that bought 5.23 million LTC at a minimum price of $59 will provide significant support to the asset, but if they do not hold out, the asset may reach a new yearly low of $50.
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2023-09-19 06:37:12
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