Litecoin Whale Dump Sparks Correction Fears: Is LTC Heading for a Drop?
A massive Litecoin whale just unloaded bags—and the market's sweating bullets.
Whale alert triggers panic
When big players exit, retail traders scramble. This ain't your grandma's 'hodl' strategy—it's a classic pump-and-dump red flag waving at 90mph.
Technical carnage ahead?
LTC's chart looks like a skydiver without a parachute. Every trader and their dog sees that descending triangle forming. 'Support levels'? More like wishful thinking at this point.
Silver lining for degenerates
Volatility means opportunity (or margin calls). The same suits dumping LTC today will be front-running the bounce tomorrow—because finance is just legalized gambling with Excel spreadsheets.
LTC whale reduces exposure while funding rates turn negative
Santiment’s Supply Distribution shows that a certain whale wallet holding LTC tokens between 100,000 and 1 million (red line in the chart below) had offloaded 540,000 LTC tokens since June 24, reducing its exposure, which could cause a decline in LTC prices as selling pressure mounts.
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LTC Supply Distribution chart. Source: Santiment
Coinglass’s OI-Weighted Funding Rate data shows that the number of traders betting that the price of Litecoin will slide further is higher than that anticipating a price increase. The metric has flipped a negative rate and reads 0.0062% on Wednesday, indicating that shorts are paying longs. Historically, as shown in the chart below, when the funding rates have flipped from positive to negative, Litecoin’s price has fallen sharply, as seen on June 18.
Litecoin OI-Weighted Funding Rate chart. Source: Coinglass
Litecoin Price Forecast: LTC on the verge of a correction
Litecoin’s price faced rejection around the 50-day Exponential Moving Average at $87.55 on Monday and declined by 5.4% until Tuesday. This level coincides with the upper trendline of a falling wedge pattern, making this a key resistance zone. At the time of writing on Wednesday, LTC hovers around $83.79.
If LTC continues its correction, it could extend the decline to retest its weekly support at $77.19.
The Relative Strength Index (RSI) indicator reads 44 on the daily chart, below its neutral level of 50, indicating bearish momentum. The Moving Average Convergence Divergence (MACD) hints at a bearish crossover (the MACD line is close to crossing below the signal line), which, if completed, WOULD give a sell signal.
LTC/USDT daily chart
However, if LTC recovers, it could extend the recovery to retest the 50-day EMA at $87.55.
