After the halving event, Litecoin’s value experienced significant volatility, quickly falling below key support levels. While many expected LTC to rise from these bottom positions, it lacked the necessary buying momentum. However, current on-chain indicators suggest that whales are quietly taking action, perhaps in anticipation of a strong bullish surge in the coming weeks.

Litecoin’s Huge Transaction Volume Continues to Increase

Litecoin (LTC) has been making waves lately with its steadily increasing trading volume, indicating a renewed interest among traders. According to IntoTheBlock data, large transactions of Litecoin have been increasing over the past seven days. The volume surged from $1.74 billion to $1.84, suggesting that whales are investing in the LTC market near the current dip.

A sustained increase in volume usually precedes a bullish trend as it indicates strong demand and positive sentiment among traders and investors. Additionally, if the LTC price surges sharply due to buying pressure, it could trigger a large number of short position liquidations.

In addition to the existing positive indicators, there is another factor that could strengthen Litecoin’s bullish momentum: the recent behavior of miners. Data suggests a significant shift in miners’ behavior, especially in terms of their selling habits.

A sustained increase in volume usually precedes a bullish trend as it indicates strong demand and positive sentiment among traders and investors. Additionally, if the LTC price surges sharply due to buying pressure, it could trigger a large number of short position liquidations.

In addition to the existing positive indicators, there is another factor that could strengthen Litecoin’s bullish momentum: the recent behavior of miners. Data suggests a significant shift in miners’ behavior, especially in terms of their selling habits.

Litecoin miners have seen a noticeable drop in outflows over the past two weeks. Specifically, the metric that measures the amount of Litecoin moved out of miners’ wallets has dropped significantly. It has plummeted from a peak of $28 million to a much lower $13.7 million.

As miners sell less Litecoin, the supply of Litecoin on the market may tighten. Reduced supply, coupled with stable or increasing demand, may put upward pressure on prices. It is worth mentioning that the total supply of LTC is capped at 84 million, and there are currently 73 million Litecoins in circulation.

Where will LTC price go next?

Litecoin is facing challenges in rebounding from the strong support at $80, which shows a lack of buying pressure near the higher levels of $85.

The 20-day EMA falling at $82.8 on the 4-hour price chart, coupled with the RSI below the midline, suggests that bears are currently in command. If LTC price slides and fails to sustain above $80, it will hint at a significant downside correction. The next support to monitor is $74 and then $65.

On the other hand, the main resistance to watch on the upside trajectory is $85, which is the upside of the consolidation zone. If the buyers push the price above $88, it may signal the start of a larger recovery that has the potential to reach $97. However, this price point is likely to see greater selling pressure.

Past performance suggests bulls are hopeful. After the 2019 Litecoin halving, although LTC dropped from $66 to $35 in December 2019, it surged to $400 in 2021.