Litecoin stalls near $90 level: Will this group swoop in to save LTC?
Over the recent weeks, Litecoin [LTC] has not demonstrated any commendable price surges, particularly after its attempt to breach the $100 mark witnessed between March and April, which resulted in notable setbacks.
Despite the dip, heavyweight investors have seized the chance to bulk up on their LTC holdings, snapping up millions of units over the past month. Nonetheless, the interest in Litecoin, as measured by Open Interest, has seen little to no change during this time.
Noteworthy Accumulation by Whales in a 30-Day Span
Information gathered from IntoTheBlock highlights a massive accumulation spree by significant investors, who have added over 2.751 million LTC to their portfolios in the last 30 days.
Valued at current market prices, this hoarding spree surpasses $229.7 million. Particularly on May 10th, these accounts experienced an influx of roughly 900,000 LTC, marking the most considerable accumulation since February.
A delve into the distribution of supply reveals that, while smaller wallets have been gradually increasing their LTC holdings, the bulk of accumulation has been by the larger wallets.
Fascinatingly, this trend of stockpiling continues unabated despite LTC’s declining price movements.
Litecoin's Persistence on a Bullish Trajectory
An examination by AMBCrypto of Litecoin's pricing behavior on a daily chart notes that its short Moving Average (represented by a yellow line) has been acting as a resistance zone, fluctuating between $86 and $90.
At the moment of this analysis, LTC is trading at approximately $83.5, marking a slight growth of more than 1%, per AMBCrypto’s findings.
The long Moving Average (illustrated by a blue line) seems to be holding up as a sturdy support level in the $77 to $78 range.
Following a brief dip towards the neutral line, Litecoin's price has seen an uplift, crossing above this threshold once more.
The Relative Strength Index (RSI) analysis points to a position above the neutral line, hinting at a bullish trend, though it appears to be on the weaker side.
Stagnant Interest in LTC
A closer look at Litecoin’s Open Interest through AMBCrypto’s lens and data from Coinglass reveals a rise to over $600 million in March, followed by a decrease to around $500 million in April.
Subsequently, there was a significant drop, and by the end of April, numbers had leveled out, settling at about $330 million.
Presently, Open Interest has stagnated, hovering around $340 million, indicating a reduction in monetary inflow towards LTC in recent times.
AMBCrypto’s scrutiny of LTC’s Funding Rate illustrates it remaining in positive territory, although at a modest level. This scenario suggests that while there is a prevalence of buyers over sellers, their magnitude is comparatively minor. These indicators reflect a rather subdued enthusiasm surrounding Litecoin.
