Litecoin Whales Buying The Latest Dip: Is It Enough For A Rally?

Litecoin swing traders could be in for a treat in the coming days now that it is showing signs of a potential pivot after its bearish performance this week. Recent data shows that demand from whales is starting to build up.

IntoTheBlock data revealed that large holder netflows were up seven-fold in the last 5 days. Large holder inflows surged from 296,760 LTC on March 2nd to over 1 million coins as of March 6th. Meanwhile, outflows surged from 111,550 coins to over 840,000 LTC during the same period.

Litecoin large holder flows | Source: IntoTheBlock Litecoin large holder flows confirm that demand from whales has been on the rise. This means they have been buying as price dropped lower this week.

Recent data also revealed that whales purchased over 430,000 LTC in the last 24 hours. This confirms that that whale activity is still building up and could soon push price

Source: X

Litecoin Address Activity Confirms Robust Accumulation

Litecoin’s recent whale activity was also consistent with address activity. For example, addresses with balances surged to 8.26 million addresses on Tuesday this week.

Why is this important? Well, this address growth surged to levels last seen in October last year, which was just before the Q4 2024 rally. This suggests that demand has been building up just as it did back then.

Litecoin total addresses with balance | Source: IntoTheBlock Litecoin address activity combined with whale activity confirms that LTC investors are holding on to optimism about its potential upside. This is also evident in its price action since December.

LTC Ranging Performance Explaing the Surging Investor Interest

Litecoin price action has been moving within a range since December. The upper limit of the range is just above $139 while strong support has been forming within the $94 price level.

The latest retest of the lower limit of the range occurred on 3 March, which is around the same time that whale activity started building up.

The retest also suggests that price could embark on a bullish uptrend in the next few days if aided by strong demand surge.

LTC price action/ source: TradingView So far on-chain data reveals that retail demand is yet to make a noteworthy comeback especially in the spot segment. This was also the case in the derivatives segment with volume down by 3.7% and open interest down by 2.02% in the last 24 hours.

Funding rates cooled down considerably in the last few days, underscoring the prevailing uncertainty. Nevertheless, there support retest suggests that excitement could be making its way back into the market.

A major reason supporting the above point is the mid-week spike in Litecoin hash rate which clocked 2.65 PH/s on Wednesday. This was the highest ever recorded hash rate figure.

A spike in Litecoin hash rate usually indicates that miners anticipate a surge in transaction activity. It also indicates healthy returns for miners depending on price level.

In this case, Litecoin’s dip to the bottom of its range did not trigger a sizable negative impact on miner profitability.