Litecoin Surges 6.52% to Three-Month High, Demand Soars
1min read Litecoin has experienced a significant price surge, rising 6.52% in the past 24 hours to reach a three-month high of $91. This upswing has seen the altcoin break out of a descending channel, indicating a shift in market sentiment. As of the latest update, Litecoin was trading at $89, marking a notable increase from its local low of $83.
The surge in Litecoin's price is accompanied by a 31% increase in its volume, reaching $509.5 million. This rise in volume, coupled with increasing prices, suggests a growing demand for the altcoin as buyers enter the market to accumulate LTC. Traders have been actively accumulating Litecoin over the past week, signaling increased confidence in the altcoin's potential.
This accumulation is further evidenced by a significant drop in Litecoin’s flow into exchanges. Over the past three weeks, the total flow to exchanges has declined to a three-month low, indicating that fewer coins are being moved to exchanges for selling. This behavior is particularly prominent among large holders, or "whales," whose net flow to exchange ratio has also declined sustainably over the same period. This implies that large holders are accumulating more than they are selling, with a positive capital inflow of 116.8k LTC.
The trend of accumulation is also reflected in Litecoin’s scarcity. The altcoin’s stock-to-flow ratio has spiked to 306, indicating higher scarcity with less LTC available for immediate selling. Increased scarcity, combined with rising demand, often leads to higher prices. This trend suggests that Litecoin could be poised for further gains if the current demand and upward momentum continue.
According to the analysis, Litecoin was experiencing strong demand at the time of reporting, with buyers taking control of the market. Before this price surge, Litecoin had been trading within a week-long ascending pattern inside a multi-month descending channel. The recent price upswing has allowed Litecoin to break through this descending channel, and a successful retest of this level could see the altcoin make a major move to the upside.
Litecoin’s Moving Average Convergence Divergence (MACD) has risen to 1.2 since making a bullish crossover two weeks ago. The continued rise in the MACD suggests strong upward momentum, with the altcoin closing higher highs on daily charts. If the current demand holds and the upward momentum continues, Litecoin could successfully retest the latest move and potentially reach $96. However, if the bulls' attempt fails, a pullback could see Litecoin drop to $83.
