In a trading environment dominated by bearish prospects, leading to major asset liquidations hourly, Litecoin (LTC) is attracting attention for all the right reasons. As traders prepare for a new wave of selling pressure following the long-awaited court approval that will allow FTX to divest its $3.4 billion in cryptocurrency holdings, Litecoin is flashing promising signs. The LTC price signals a potential bullish reversal, supported by encouraging on-chain data.
Litecoin’s long-term holders are gaining confidence
The altcoin market is currently facing concerns about a significant sell-off starting tomorrow if FTX receives court approval to liquidate its crypto stock. However, LTC price is in a recovery trend after falling below the crucial support at USD 60.
The LTC token’s health and demand are bullish, as evidenced by IntoTheBlock’s data. Long-term holders are optimistic about Litecoin’s future trajectory as addresses holding Litecoin for more than a year have reached an all-time high. The value has increased exponentially since June and has now reached the 5.02 million mark.
The number of addresses has grown by 602,000 since Litecoin’s 2023 peak price of $114.5 on July 2. In the same time frame, these addresses have also seen an increase in their Litecoin holdings by 3.2 million LTC.
This suggests that even amid the falling price, a significant number of current network users remain confident in Litecoin’s long-term potential.
Furthermore, whales with Litecoin balances ranging from 10,000 to 100 million LTC are showing signs of optimism. According to Santiment data, these large holders have paused their weeklong selling spree and bought 40,000 LTC in the price drop over the past two days. At the current price of approximately $60 per coin, these new purchases amount to an estimated value of $2.4 million.
What’s next for LTC pricing?
Litecoin price saw a recovery in recent hours as buyers created buying sentiment around the $57 dip. LTC price rose towards the 20-day Exponential Moving Average (EMA) at $60.8 but failed to break through, indicating strong resistance from bearish traders at this level. At the time of writing, the LTC price is trading at $60.48, up over 1.8% from yesterday’s price.
As the bears failed to break the key support level at $53, this suggests that sell-off pressure is easing at these lower prices. The Relative Strength Index (RSI) appears to be forming a positive divergence as it moves towards the midline, indicating weakening selling momentum.
A key bullish indicator would be a successful break and close above the 20-day EMA, paving the way for a more robust recovery towards $65. A further increase could push the price towards $76.
Conversely, if the $53 support breaks down, the LTC price could enter a downward trajectory. In this case, we could see the price drop to the crucial $47 level.