On-chain data shows that Litecoin is the winner of daily crypto gains as whales appear to be behind the ongoing LTC price rally.
Litecoin Long Distance Trading Company
Became one of the best-performing cryptocurrencies on March 23, surpassing its top rival Bitcoin
Bitcoin $28,711 and Ethereum $1,846
Litecoin attracts Bitcoin and Ethereum investors
LTC price rose 5.5% to hit an intraday high around $92.50. In comparison, the total cryptocurrency market capitalization (TOTAL) rose 2.25% to $1.14 trillion, with BTC and ETH gaining 1.79% and 1.42% respectively.
The Federal Reserve’s 25 basis points (bps) interest rate hike on March 22 appears to be the main driver behind Litecoin’s victory over its crypto rivals over the past 24 hours.
Notably, LTC prices are up more than 15% relative to BTC and around 14.5% relative to ETH since the Fed’s announcement.
One reason could be that Litecoin has relatively underperformed the cryptocurrency market in March, down more than 6.5% month-to-date (MTD) compared to the cryptocurrency market’s 9.35% gain.
Therefore, traders may view this as a “buy the dip” opportunity for Litecoin with greater upside potential, especially with few other notable catalysts.
Whale accumulation ahead of Litecoin halving?
Meanwhile, on-chain data shows an increase in Litecoin supply held by addresses with balances between 1 million and 10 million Litecoin in March. Additionally, the share of supply held by addresses with balances between 100,000 LTC and 1 million LTC has been declining.
This suggests that whales holding 10,000-1 million LTC have been accumulating Litecoin holdings in March to enter the queue of 1-10 million LTC holders.
Litecoin halving euphoria
A halving event occurs when the reward for mining a new block is cut in half.
Previous halvings in the Bitcoin and Litecoin markets have preceded long-term bull markets. Therefore, the next Litecoin halving, scheduled for August 2023, could also produce similar bullish results.
Independent market analyst Rekt Capital noted that optimism surrounding Litecoin’s halving may have influenced traders to purchase LTC in the face of “market-wide declines.”
What’s next for LTC price?
From a technical perspective, Litecoin appears poised for a price correction in the coming weeks.
Notably, LTC/USD is testing its multi-month descending trendline resistance for a potential pullback, similar to what happened in May and November 2021.
A decisive bearish reversal could see LTC test its previous support line near $47.50 as a downside target, a decline of approximately 45% from current price levels.
Conversely, a break above the falling trendline resistance could push LTC price towards the $105-140 price range.
C3 Tip: The views, thoughts and opinions expressed here are solely those of the author. This article does not contain investment opinions or recommendations. Every investment and transaction involves risk.
