Key Takeaways
What is the significance of rising transaction volumes?
Litecoin’s all-time high on-chain volume, combined with whale accumulation, underlined conviction from Litecoin network users.
What can be expected from LTC’s price action?
Price-wise, a rally to $118 and possibly $132 could ensue this month. However, further gains might be difficult.
Litecoin [LTC] bulls could be making another attempt at establishing an uptrend. The rally in July and August took LTC’s price only as far as $134.2, before the bears took over. However, LTC has now reclaimed the $100-psychological level.
This was the first time since the 10/10 crash that LTC moved beyond $100. In fact, the altcoin was trading at $109 at the time of writing. With Bitcoin [BTC] recording a 4% bounce within 24 hours to hit $105.7k, could it be that market sentiment is making a U-turn?
Litecoin recovery imminent?
A post on Santiment Insights recently pointed out that the whale count for LTC has risen lately. There has also been a 6% uptick in wallets holding more than 100k LTC over the past three months – A sign of accumulation from big holders.
That’s not all though as Litecoin’s on-chain volume climbed to $15.1 billion in daily volume. This was an all-time high. The combination of whale conviction and rising on-chain activity could be indicative of the fact that LTC’s rally has room to expand.
Source: Santiment
At press time, other on-chain metrics seemed to disagree with the strength of the bulls though. Its latest move could face pressure from profit-taking activity soon. Especially as the 180-day MVRV climbed into positive territory for the first time since 10/10.
The mean coin age saw a sizeable drop towards the end of October. Its trend since August did not indicate widespread on-chain accumulation. Rather, it was more neutral than bullish, and the drop below $90 recently gave way to a wave of panic selling.
This might not be a sign of conviction from on-chain participants. The development activity was at zero since the first week of September too.
Together, it didn’t seem to be a wholly bullish trend. And, it might be safer to be cautious of LTC’s rally, than seeing it as a sign of strength.
Source: LTC/USDT on TradingView
Finally, the Fixed Range Volume Profile for 2025 showed that the Value Area High and Low (dotted blue) for LTC were at $131.85 and $94.9, respectively. The Point of Control (red) was at $118.2, with all three emerging as key horizontal levels for traders to keep an eye on.
The press time market structure of Litecoin was bullish, and there has been above-average buying volume in recent days. However, the resistances from $118-$132 will remain formidable obstacles.
