Litecoin (LTC) Price Prediction: Whales Continue to Dump, Raising Concerns of Market Correction

As bearish signals gradually increase, Litecoin (LTC) is flashing early signs of a potential pullback. Earlier this week, LTC faced resistance at a key resistance level, and as of Wednesday when this article was written, the LTC price was hovering around $84. On-chain data shows that since June 24, a certain "Whale" Wallet has been selling LTC Tokens, which has intensified the dumping pressure. Furthermore, Technical Analysis and negative Interest Rate indicate that LTC may experience a pullback in the near future.

LTC whales reduce exposure, while the interest rate turns negative

The supply distribution from Santiment shows that a Whale Wallet holding between 100,000 and 1,000,000 LTC Tokens (the red line in the chart below) has sold 540,000 LTC Tokens since June 24, reducing its exposure, which may lead to a fall in LTC prices as selling pressure increases.

Coinglass's open interest weighted financing rate data shows that the number of traders betting on a further fall in Litecoin prices is higher than the number of traders expecting a price increase. This indicator turned negative on Wednesday, with a reading of 0.0062%, indicating that shorts are paying longs. Historically, as shown in the chart below, when the financing rate shifts from positive to negative, the price of Litecoin tends to drop significantly, such as in the case of June 18.

LTC Price Analysis

FXStreet analyst Manish Chhetri stated that LTC price encountered resistance near the 50-day exponential moving average at $87.55 on Monday, and has since fallen 5.4% as of Tuesday. This level coincides with the upper trend line of a descending wedge pattern, making it a key resistance area. As of Wednesday when this article was written, the Litecoin price was hovering around $83.79.

If LTC continues to pull back, it may extend the fall and retest its weekly support level of $77.19.

On the daily chart, the Relative Strength Index ( RSI ) shows 44, below the neutral level of 50, indicating bearish momentum. The Moving Average Convergence Divergence ( MACD ) indicator suggests a bearish crossover (the MACD line is close to crossing below the signal line), which, if completed, will issue a sell signal.

However, if LTC recovers, it may continue its upward momentum and re-test the 50-day EMA at $87.55.

(Source: FXStreet)