- Litecoin concluded a bullish week aided by a resurgence in social engagement
- Whales have been contributing to the rally, but the cryptocurrency might see a pullback soon
It has been an interesting week for Litecoin, largely because there was a surge in its social activity over the last few days. While this was accompanied by noteworthy bullish price action, can the cryptocurrency keep up this trend in the long term?
The hike in Litecoin’s social engagement was particularly evident in its social metrics. For example, its X (Twitter) account has been losing followers for the last 6 months. However, the number of followers pivoted from a downtrend and started growing once again earlier this month.
Source: Messari
The number of followers has adopted a positive trend since the second week of October, indicating renewed interest in the cryptocurrency. This observation can be interpreted to be a precursor of greater LTC demand across the board.
Even on the price front, it has been a good week for the altcoin. At press time, it was valued at $75.32, up 17% from its weekly low. In fact, owing to these gains, Litecoin emerged to be one of the market’s biggest gainers over the past week.
Source: TradingView
On the charts, LTC has been hitting higher lows since August, confirming that accumulation has been taking place.
This is a sign of the change in sentiment and social activity around the cryptocurrency. By extension, it also highlights the possibility that it may continue on the path of bullish recovery.
Litecoin whales have been adding to their balances
On-chain data revealed that Large holder accounts have been accumulating the altcoin for a while now.
For example, large holder inflows soared from 175,630 LTC on 13 October to 438,700 LTC on 16 October. This hike coincided with the period during which the cryptocurrency surged on the price charts.
Source: IntoTheBlock
Meanwhile, Litecoin large holder outflows also registered a noteworthy surge from 95,480 LTC on 13 October to 202,180 LTC on 14 October.
This revealed that inflows into large holder addresses were 2 times more than the outflows from addresses in the same category. In other words, whales have been aggressively accumulating Litecoin.
Can Litecoin sustain its current momentum? Well, on-chain data revealed a huge spike in buy and sell volumes from 12 October, peaking on 15 October. Alas, both buy and sell volumes have declined since.
Source: HyblockCapital
Taken together, the buying and selling volume profile suggested that the initial volume that set the current rally in motion has since declined. This may allude to the possibility of more sell pressure in the coming days.
On top of that, LTC recently pushed into a resistance line at the $76 price level. This may result in some profit-taking and a potential pullback on the charts.