Litecoin Whales Have Cooled the Buying Pressure
Last week, Litecoin (LTC) whales bought the dip and triggered a 12% rebound in the price. However, as the upcoming Federal Open Market Committee (FOMC) meeting approaches, these whales seem to have reduced their buying pressure. The question is: what will happen to the LTC price after the Fed rate announcement on September 19?
An analysis of on-chain data reveals that the whales, who hold 10,000 to 1 million LTC coins, played a crucial role in the recent price rebound. They accumulated 510,000 LTC coins between September 10 and September 14, increasing their balances from 38.94 million LTC to 39.45 million LTC. But since then, they have maintained steady balances without making any significant moves.
Retail Investors are Yet to Ape In on the Recent Price Recovery
Despite the price bump, retail investors have not shown much interest in Litecoin. Social Dominance, which measures the percentage of social media mentions a cryptocurrency attracts among the top 50 projects, has remained flat at around 0.60% to 0.70% over the past week. This suggests that Litecoin has not yet gained extreme media attention and still has room for upward movement.
LTC Price Prediction: $80 is a Viable Target
If the upcoming Fed meeting yields a favorable outcome for the crypto market and the whales become optimistic again, Litecoin could experience another rally towards $80. The In/Out of Money Around Price data also supports this bullish stance. It shows that if LTC surpasses the $68 obstacle, there is potential for further upward momentum towards $81.
On the other hand, if the bears take control and push LTC below $50, there is a possibility of the price dropping further. However, there is considerable support from addresses that bought LTC at the minimum price of $59. They could attempt to cover their positions and provide support to prevent a significant decline.
Hot Take: Litecoin’s Recovery Depends on the Fed Meeting
The recovery of Litecoin (LTC) is currently in a precarious position as it awaits the outcome of the upcoming Federal Open Market Committee (FOMC) meeting. The buying pressure from whales has cooled off, and retail investors have yet to show significant interest in the cryptocurrency. If the Fed cuts rates or holds them steady, it could trigger a bullish market reaction and encourage both whales and retail investors to buy LTC again. This could potentially lead to a prolonged rally towards $80. However, if the bears take control and push LTC below $50, it could result in a drop in price. The fate of LTC now lies in the hands of the Fed.
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