Despite heightened whale engagement, the value of Litecoin might encounter a considerable drop.
Litecoin (LTC) was assessed at $93.80 on Friday, a 36% decrease from its annual peak and slightly above the low of $83.33 reached earlier in the month. On-chain measurements depict a varied scenario for Litecoin. On the bright side, the total of holders has stayed constant at 8.6 million over the last few days.
Another crucial measurement is the 365-day average dollar investment age, which evaluates how long a cryptocurrency has been kept in its present addresses and determines the average age of the funds utilized to acquire it. Litecoin’s MDIA has grown considerably to 600, up from 500 earlier this year, demonstrating growing accumulation by holders. This week also observed a remarkable surge in whale transactions on the Litecoin network, soaring to 227 on Friday, up from 167 earlier in the week. This implies that seasoned investors are vigorously acquiring the cryptocurrency, anticipating a value recovery.
One probable cause for whale and user accumulation is the anticipation that the Toncoin (TON) Value Forecast for March 26th of Litecoin will recover if the SEC approves a spot LTC ETF. Furthermore, investors might view Litecoin as undervalued, as the market value to realized value (MVRV) Z-score has plummeted to its lowest point in months. A declining MVRV indicator intimates that an asset is undervalued.
On the daily chart, LTC has breached below the crucial support threshold of $112.50, which was the highest volatility point in March 2024. Moreover, Litecoin has established a mini death cross, with the 50-day and 100-day moving averages intersecting each other. Litecoin has entered a bear market this year, and technical indicators propose that despite increased whale engagement, there is still considerable downside potential. It has also fashioned a bearish flag pattern, a widely utilized continuation signal, and a rising wedge pattern, comprised of two rising and converging trendlines.
Despite the encouraging appearance of blockchain information, the likelihood of a price collapse is greater. Should this occur, closely monitor the $80 level, which is anticipated to represent the nadir in 2025.
