Market Overview

Spot traders took a neutral position in the market, with whale accumulation climbing on the charts too
Litecoin’s price could reclaim a key consolidation level and see a major move to the upside

Litecoin (LTC) investors have had a challenging past few weeks, experiencing losses of 12.75% over the past week and 36.61% on the monthly charts. However, the tides appear to be changing, with whale activity positively impacting the cryptocurrency, leading to a nearly 2% increase within 24 hours.

Spot Traders Pass the Baton to Whales

According to IntoTheBlock, spot traders have ceased active buying and selling, with zero LTC traded in the last 24 hours. This scenario indicates exhaustion among buyers and sellers, resulting in a neutral position with no accumulation or distribution.

While spot traders adopt this neutral stance, whales report high trading volumes, holding $8.24 billion worth of LTC at present. These volumes reflect both whale buyers and sellers.

The Bull Bear Indicator suggests market balance, showing equal numbers of large buyers and sellers. A rising price in a balanced market indicates buyer control as they accumulate LTC at lower prices, increasing their positions.

Derivative traders have significantly influenced Litecoin’s recent price action, with a bullish sentiment indicated by a positive funding rate of 0.0063%. This suggests a favoring of long contract holders, as they pay a periodic premium fee.

The growing taker buy-sell ratio, currently at 1:1, and an Open Interest increase of 8.66% to $10.80 million further support this bullish trend.

Reclaiming the Consolidation Path

Litecoin’s gains have correlated with a bounce off a support level at $87.71, signifying strong buying pressure during a two-day uptrend. If this bullish trend persists, LTC may reclaim the previously breached support level of $99.46, indicating the earlier drop was a stop hunt, potentially leading to a surge toward $135 if momentum continues strong.