- Summary:
- Like all other cryptocurrency projects, Litecoin has had an impressive start to the year, surging by over 25 percent in the past four weeks.
Like all other cryptocurrency projects, Litecoin has had an impressive start to the year, surging by over 25 percent in the past four weeks. The current surge has been partly due to the industry-wide bullish trend that has also pushed Bitcoin price to above $23,000. Due to Litecoin’s correlation with Bitcoin and, by extension, the entire cryptocurrency industry, the current bullish trend has also resulted in its price getting dragged to the upside.
The Whales Impact
However, the current industry-wide bullish market is not the only reason that is causing the Litecoin price to surge. Based on recent data from Santiment, a market intelligence platform that focuses on on-chain and social metrics, transactions worth over $1 million of Litecoin had exploded. The data was an indication that whales were slowly starting to invest in the project, which resulted in its price spiking.
As Santiment pointed out, a huge spike in whale activity in the past has resulted in the crypto surging by 37 percent at one time and 34 percent at its peak. Therefore, the recent whale activity is an indication of a high likelihood that we might continue to see the current bullish trend continuing to dominate the markets.
The upcoming halving of Litecoin later this year may also be contributing to the current Litecoin price surge. As seen from previous halvings of 2015 and 2019, the process, in most cases, results in a bullish trend.
Litecoin Price Forecast
On the technical side of things, I expect the current bullish trend to continue. After the recent Litecoin surge of over 25 percent, Litecoin’s price action remains aggressively bullish on the daily chart below, indicating a possible continuation of the trend.
Indicators such as the Williams Alligator on the daily chart below also continue to give signals of a bullish trend continuation. Therefore, my Litecoin price expectation for the next few trading sessions is for it to continue rising. There is a high likelihood we might see it returning to trade above the $100 price level. A drop below $80 will invalidate my bullish analysis.
Daily Chart
