Litecoin Price Hits 4-Month High, But Whale Selling Could Be Risky

Litecoin again attracts attention with a 14% price increase, trading at $116 after several consecutive days of growth. This recent growth aligns with the broader cryptocurrency market's momentum and increasingly clear signs of an upcoming altcoin season.

However, despite the optimism, large "whale" activity could undermine this upward trend. Large holders are taking profits, and this movement could challenge Litecoin's ability to maintain its growth momentum.

Litecoin Support May Be Weakening

Over the past five days, whale wallets holding between 100,000 and 1 million LTC have sold over 500,000 coins. This large selloff is equivalent to approximately $58 million and indicates a cautious sentiment among large investors. Their actions suggest they may be skeptical about the sustainability of the current price increase.

The sudden increase in selling pressure indicates potential instability ahead. These large-volume transactions often influence market direction due to their impact on liquidation.

If selling continues at this pace, small retail investor sentiment could turn negative, increasing pressure on Litecoin's short-term performance.

Despite whale selloffs, on-chain data from the Mean Coin Age (MCA) indicator shows a different story. Long-term holders (LTHs) are demonstrating consistency, not selling. These wallets, known for their steadfastness, continue to hold, which is a positive sign for price stability.

LTHs typically determine medium and long-term trends, and their limited participation in the recent selloff indicates confidence in Litecoin's prospects. This counterforce could provide the necessary support for Litecoin to resist price decline and potentially stabilize at current levels.

LTC Price Needs to Overcome Important Resistance Level

At the time of writing, Litecoin is trading at $116, near the $117 resistance level. Although the price has increased 14% in the past 24 hours, the whale selloff could create an obstacle.

A strong push from buyers is needed to overcome the upper barrier and maintain the growth momentum.

If negative sentiment from whale activity increases, Litecoin could return to $105. This level serves as the next important support and could become a basis for lateral accumulation if selling continues.

Conversely, continued support from small retail investors and LTHs could help Litecoin surpass $117. Breaking this resistance level would signal strength and open opportunities towards $124, marking a four-month high and confirming the price increase trend.