Key Insights
- The Litecoin mega-whales have been accumulating massive amounts of Litecoin since early November.
- The mega-whales have accumulated 2.95 million LTC over this timeframe, worth about $220 million.
- Litecoin has to stay above $73 for the bulls to stay in control.
Litecoin has been one of the top-performing cryptocurrencies on the market in terms of price and several other metrics. Cryptocurrency has a timetable packed full of new developments coming up.
These developments range from the interest rate announcement from the European central bank, the US Federal Reserve, and the Bank of England this week and the third and latest Litecoin halving, expected to happen sometime in the third quarter of 2023.
The whales are aware of these developments and have begun accumulating massive amounts of LTC.
This accumulation rate, according to Santiment, has been so massive that the last time the whales held this much Litecoin was five years ago in 2017.
Mega-whales Accumulate 2.95 Million Litecoin in Five Weeks
According to Santiment, the LTC mega-whales have begun accumulating massive amounts of Litecoin over the last few weeks.
The On-chain data aggregation platform notes that addresses with 1 Million or more coins have now gathered as much as a whopping 2.95 Million Litecoin since the first few weeks of November.
Santiment also notes that this accumulation rate was last seen in June 2017, or more than five years ago, and the number of tokens scooped up by the mega-whales within these five weeks is worth a whopping $219.6 million.
These mega-whales now hold the highest percentage of the available Litecoin in years, making the cryptocurrency one of the most bullish ones on the market.
Litecoin (LTC) Price Analysis
This week, the US Federal Reserve, ECB, and Bank of England (BoE) are all scheduled to make announcements regarding interest rates.
The US Federal Open Market Committee (FOMC) will announce its choice to raise interest rates on Wednesday, 14 December, with a 75% probability of doing so by 50 basis points. The following day, the ECB and BoE will announce their interest rate decisions.
Above all, these developments promise a highly volatile week for several cryptocurrencies across the market this week, not just Litecoin.
Throughout November, the price action of Litecoin was bullish. The cryptocurrency soared from a low of $57, eventually hitting the $73 – $75 resistance and breaking through in the last few days of the month.
However, Litecoin has reversed for a retest of this $73 zone after hitting the $83 mark and is now consolidating above support.
At the time of writing, the cryptocurrency has reversed for a retest of the $73 zone, where the bears will try again to sink it below this support line. So far, Litecoin has broken through its 20-day EMA (blue) to the bottom, and the bears are likely targeting a retest of the 50-day EMA around the $68 zone.
For the bulls to stay in control of the Litecoin market, the price of the cryptocurrency has to stay above $73. The bulls’ failure to keep the cryptocurrency above this level may lead to a breakdown and the price of Litecoin plummeting to new lows.
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