Litecoin (LTC) has made a strong recovery after facing a challenging December 2024. The cryptocurrency endured a significant drop of over 40%, falling from $147 to a low of $86.69. However, as we head into the new year, things are looking more optimistic for LTC. The recent price action signals a potential bullish move—driven by increased whale activity and growing market interest.
$LTC
— CJ Bennett (@the_real_CJ) January 2, 2025
Seeing these same setups all across the market. Either a flag, wedge, or downward channel with a local bottom printing near the end of the structure, as well as a squeeze etc. Litecoin is looking ready to blow here too.
Currently retesting the 50D SMA, which just so… pic.twitter.com/RxGSVTo8nS
Litecoin’s December Struggles and Recent Bounce Back
The month of December was not kind to Litecoin. From its peak of $147, the cryptocurrency lost nearly 41% of its value, dipping to $86.69 by the month’s end. Despite this setback, Litecoin has shown resilience, recently consolidating between $96 and $105. These price levels fall within the crucial 0.5 and 0.618 Fibonacci retracement zones, indicating potential support and a path to recovery.
At the time of writing, Litecoin was trading at $105.85, demonstrating a four-day streak of positive price action. While it’s still 38% away from the December high, the recovery could signal the start of a bullish rally as LTC eyes new heights.
Whale Activity Fuels Litecoin’s Rebound
Recent on-chain data reveals that large holders, or “whales,” have been actively accumulating LTC during the price dip. In early December, whales controlled 7.44 million LTC. By the end of the month, their holdings grew to 9.06 million LTC, showcasing increased confidence from institutional and large-scale investors.
Moreover, rising trading volume and open interest further support the notion of a healthy market. In the past 24 hours, Litecoin’s trading volume surged by 11.40%, reaching $596.94 million. Open interest also rose by 2.12%, signaling that traders are increasingly optimistic about Litecoin’s future.
Also Read: Litecoin (LTC) Surges in 2024: 401K Daily Active Addresses and $500 Price Target in Sight
Looking Ahead: Will Litecoin Continue Its Bullish Momentum?
As we move into 2025, the outlook for Litecoin remains promising. The surge in whale activity, rising trading volume, and positive market sentiment indicate that LTC could continue its upward trajectory. If these trends persist, Litecoin may be poised to revisit its December peak and potentially set new all-time highs in the coming months.
Disclaimer: The information in this article is for general purposes only and does not constitute financial advice. The author’s views are personal and may not reflect the views of Chain Affairs. Before making any investment decisions, you should always conduct your own research. Chain Affairs is not responsible for any financial losses.
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