Litecoin Whales Accumulate, Price Jumps 2% Amid Bullish Sentiment

Litecoin investors have faced significant challenges in recent weeks, with losses amounting to 12.75% over the past week and 36.61% on the monthly charts. However, there are signs of a potential turnaround as whales, or large investors, have started to accumulate the cryptocurrency. This accumulation has had a positive impact, with Litecoin's price increasing by almost 2% in the last 24 hours.

According to analysis, Litecoin could reclaim a key level, potentially marking the start of a major rally and reversing recent losses. Spot traders have taken a neutral position, with no active buying or selling of the asset in the last 24 hours. This indicates a balance between buyers and sellers, with no significant accumulation or distribution of Litecoin on exchanges. Meanwhile, whales have recorded high trading volumes, holding $8.24 billion worth of Litecoin at the time of reporting. The Bull Bear Indicator suggests a balance in the market, with 28 bulls and bears, indicating that buyers are in control, accumulating the altcoin at a lower price.

Derivative traders have also played a significant role in Litecoin's recent price movement, with most traders being bullish as indicated by the positive funding rate of 0.0063%. A positive funding rate means the market favors long contract holders who pay a periodic premium fee. The growing taker buy-sell ratio, which measures whether derivative trading volume is dominated by buyers or sellers, stood at 1:1 at the time of writing. The Open Interest grew by 8.66% to hit $10.80 million on the charts, further indicating bullish sentiment.

Litecoin's recent gains correlated with the price bouncing off a support level at $87.71, reflecting strong buying pressure that aided its two-day consecutive uptrend. If the bullish trend continues, Litecoin could reclaim the support level of the consolidation channel it previously breached at $99.46. This would indicate that the drop below this level was merely a stop hunt, and the price can continue rallying north. If the altcoin hits this new support level at $99.46, the price could surge to the peak of the channel at $135. If momentum remains strong at this level, Litecoin might continue its upward trajectory.