Litecoin (LTC) Price Rises Over 4% Amid Positive Sentiment
The price of Litecoin (LTC) surged by more than 4% on Friday, surpassing $64, as the overall crypto market experienced renewed optimism. LTC’s rally coincided with Bitcoin’s breach of $30,000, while trading volumes on major exchanges reached $370 million.
Factors Driving Positive Sentiment
Several factors are contributing to the positive sentiment surrounding Litecoin. One of these is the growing momentum around a potential Bitcoin spot ETF. Additionally, bullish on-chain metrics and Litecoin’s hashrate reaching new highs have set the stage for further gains.
Accumulation by Long-Term Holders
Data shows that long-term holder inflows for Litecoin have spiked to 2-year highs since early October. This suggests that major investors are accumulating LTC in anticipation of a price recovery rally. Historically, when holder inflows exceed 400k LTC, prices have risen by at least 25% within 20-30 days.
Short-Term Traders Remain Cautious
While long-term investors are showing confidence in Litecoin, exchange order books indicate that short-term traders remain cautious. Sell orders currently exceed buy orders by over 600k LTC. To establish a sustainable uptrend, it will be crucial for these traders to be convinced by the growing long-term investor confidence.
Key Levels to Watch
Currently, LTC is trading within a narrow range between $61-65. The key test will be whether the growing accumulation can push LTC above the psychological resistance at $65. If successful, it could pave the way for LTC to reclaim $75 in the near-term and potentially reach 2022 highs at $100.
Hot Take: Litecoin’s Prospects Depend on Overcoming Skeptical Traders
LTC has the potential to rally higher, especially if Bitcoin’s positive momentum continues. However, its fate ultimately depends on buyers convincing skeptical short-term traders. As the longest-running major altcoin, Litecoin often mirrors Bitcoin’s price movements. Nevertheless, with growing accumulation and positive sentiment, LTC could see significant gains in the future.
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