Last week, the price of Litecoin (LTC) fell to a 2023 low of $59, but it has since recovered 12% to recapture $65, indicating the start of a significant bull run.
Last week, Litecoin (LTC) witnessed a noteworthy 12% rebound, surging to $66 on September 15, thanks in part to the intervention of LTC whales. These influential holders, possessing between 10,000 to 1 million LTC coins, significantly contributed to the price recovery.
Over a span of four days, from September 10 to September 14, they strategically purchased 510,000 LTC coins, effectively bolstering the market. This surge led to an increase in their collective balance from 38.94 million LTC to 39.45 million LTC.
In the lead-up to the Federal Open Market Committee (FOMC) meeting on September 19, these same LTC whales have adopted a more subdued stance. On-chain data reveals that they have refrained from further major transactions, maintaining their balances at the aforementioned levels.
As per CoinStats, currently Litecoin is trading at $66.83, up 4.13% in the last 24 hours, with a market worth of $4.9 billion. It has a circulating supply volume of 84,000,000 LTC coins and a maximum supply volume of 84,000,000, with a 24-hour trading volume of $445M.
Litecoin's recent price action has been marked by uncertainty. After facing substantial selling pressure and experiencing a dip in value, LTC is currently hovering near the support level of $65.
It's worth noting that the price has formed a double-bottom pattern and is endeavouring to surpass the 20-day Exponential Moving Average (EMA) in a bid to regain lost ground.
The immediate future of Litecoin (LTC) price hinges on crucial levels. Sustaining a position above $60 and garnering continued buying momentum could pave the way for recovery, potentially solidifying the primary swing at $80.
Conversely, a breach of the $60 threshold might set LTC on a downward trajectory, potentially leading to a drop towards $50. However, this latter scenario faces significant resistance, as bears would need to break the psychologically significant $50 mark.
Analyzing the technical indicators offers valuable insights. On daily charts, LTC is trading beneath significant moving averages, indicating a prevailing selling pressure. Sellers have maintained short positions, with an aim to drive LTC towards the pivotal $50 level.
In the short term, LTC's attempt at a reversal faced resistance from the 200-day EMA, leading to a subsequent retracement. The Relative Strength Index (RSI) illustrates a bearish divergence, displaying heightened volatility in the sessions ahead.
Meanwhile, the Moving Average Convergence Divergence (MACD) has recorded a bearish crossover and produced red bars on the histogram, signalling a negative outlook for the immediate future.
Litecoin's trajectory stands at a critical juncture. The influence of LTC whales and the impending FOMC meeting create a dynamic landscape for cryptocurrency. Whether Litecoin will experience a robust rebound or face further challenges remains uncertain.