Key Takeaways:
- Litecoin whale dumped 300K coins.
- The bearish effect was expected due to the previous whale behavior.
- LTC price still has 10% to drop, according to the technical pattern.
YEREVAN (CoinChapter.com) – As reported by the whale-watcher platform WhaleAlert, an unknown wallet dumped nearly $26 million worth of LTC, or 300,000 coins, onto Binance. Typically, such transactions mean that the wallet holder intends to sell the coins, otherwise, they would continue keeping it in a wallet.
Large Litecoin whales exit the game, but smaller whales accumulate
When such a big sale occurs on an exchange, it can increase the supply in the liquidity pool over the demand and induce a price decrease. Additionally, in the case of whale dumps, the selloff pressure increases as retail investors often watch larger holders and copy their behavior.
Interestingly enough, two Litecoin whale categories are exhibiting opposite strategies at the moment and have been since 2019.
According to the on-chain tracker Santiment, accounts with 100,000 to 1 million LTC coins (purple line) increased their holdings since the halving and hold 35% of the market share. Conversely, wallets with 1-10 million LTC (red line) have secured their gains, unloading some of their coins.
In line with the precious prediction, the LTC price slid 3% since the halving event that took place at 17:45 GMT on Aug 2.
LTC price eyes a 10% drop to the crucial support line.
Also, the latest decline came as a continuation of the bearish momentum, and the token lost 25% since peaking at $115 on July 3. The veteran altcoin has another 10% drop in value to reach a crucial support line, as it has been trading within a consolidation channel year-to-date.
Notably, the token has retested the said support three times already since Dec 2022 and will likely reach it again within the month due to dropping trading volumes after the halving event.
In detail, halving events have had the same bearish effect on Litecoin throughout the previous years. At the time of the first halving, in August 2015, Litecoin token changed hands at approximately $3.0 for over 1.5 years. Then LTC took off, inspired by the bitcoin rally, and saw prices rise as high as $370 by Dec 2017.
A similar pattern played out after the second halving in Aug 2019. In both events, the price rallied before the halving and flatlined when traders opted for taking profits.
