Bitrabo Editorial
The Litecoin (LTC) price has seen an increase of 8% over the past month, and on-chain data suggests that a network-wide accumulation wave among Litecoin miners has been the driving force behind this ongoing rally. With the upcoming Litecoin halving event just two months away, miners have started stacking up their reserves on the LTC network. This move indicates their confidence in spite of recent industry-wide contraction. But it seems that miners are not the only ones accumulating LTC in preparation for the event – crypto whales have taken advantage of the recent LTC price correction to also join in on the action by acquiring more LTC.
Litecoin Miners Stacking Their Bags Ahead of Halving Event
As an essential part of a cryptocurrency’s inflation control, a Halving Event refers to a programmed reduction in the rate of new cryptocurrency units created and given to miners. Litecoin miners have already started accumulating their reserves in anticipation of their block rewards being cut in half in August. The data gathered from IntoTheBlock’s Miner Reserves metric shows that miners have been increasing their reserves by 160,000 from May 31 to June 7. These miners currently hold around 2.5% of the total LTC coins in circulation, which makes their current bullish sentiment significant and could trigger positive price action for LTC in the near future.
Crypto Whales Joining in on the Action
The Large Transactions metric, which tracks the trading activity of whale investors by adding up the daily number of transactions exceeding $100,000 in value, has revealed a 23% uptrend from May 22 to June 7 in Litecoin’s case. This trend indicates that crypto whales are accumulating LTC, just like the miners. This accumulation wave can build up sufficient momentum to push the LTC price towards $100 or beyond.
LTC Price Prediction: $100 on the Horizon
The bullish momentum surrounding Litecoin suggests that the LTC price may soon reclaim $100. However, IntoTheBlock’s In/Out of the Money Around Price (IOMAP) shows that LTC may face initial resistance at around $92. Despite this, if the bullish momentum prevails, the LTC price could push further towards $105. In case the bears take over, the bullish Litecoin price prediction could be negated if LTC unexpectedly loses its critical support at $86. In such a scenario, the investors who purchased 10.48 million LTC at a minimum price of $86.85 will likely prevent a drop.
Disclaimer
This price analysis article is for informational purposes only and does not constitute financial or investment advice. Bitrabo is committed to unbiased reporting, but market conditions are subject to change at any time. It is recommended that readers conduct their own research and consult with a professional before making any financial decisions.