Litecoin (LTC) reached a 4-month high, but whales could pose a risk.

Litecoin (LTC) continues to attract attention with a 14% increase, trading around $117 after several days of continuous growth. The recent bullish trend aligns with the overall trend of the crypto market and increasingly clear signs of an upcoming altcoin season.

However, despite the optimism, the strong activity of whale investors is threatening to undermine this bullish trend. Large holders are taking profits, and this move could challenge the ability to sustain the upward momentum of Litecoin.

Support may be weakening

According to data from Santiment, over the past 5 days, whale wallets holding between 100,000 and 1 million LTC have sold more than 500,000 tokens, equivalent to about 58 million USD, indicating a cautious sentiment among large investors. This action implies that they may be skeptical about the sustainability of the current bullish trend.

Sudden selling pressure surged, signaling potential instability in the future. Large volume trades often affect market trends due to their impact on liquidity.

If the sell-off continues at this pace, retail sentiment may turn bearish, increasing pressure on the short-term performance of Litecoin.

Source: SantimentDespite the whale sell-off, online data from the Mean Coin Age indicator (MCA) shows a different story. Long-term holders (LTH) are exhibiting resilience, choosing not to sell the tokens they hold, a positive sign for price stability.

LTH often indicates medium and long-term trends, and the limited participation in the recent sell-off shows confidence in the outlook for Litecoin, providing the support that this altcoin needs to withstand downward pressure and potentially stabilize its price at the current level.

Mean Coin Age indicator of Litecoin | Source: Santiment## LTC needs to break through an important resistance level

As of the time of writing, Litecoin (LTC) is trading around the resistance level of $117. Although the price has increased by 14% in the past 24 hours, the whales' sell-off could create resistance. LTC needs strong momentum to break through the upper barrier and maintain its bullish trend.

If the pessimistic sentiment due to increased whale activity persists, the price may revert to $105. This level serves as an important support threshold and could become the basis for a consolidation phase if selling pressure continues.

LTC Price Analysis | Source: TradingViewConversely, continuous support from buyers and LTH could help LTC surpass the $117 mark. Breaking this resistance level will signal strength and open up opportunities for a bullish trend towards $124, marking a new peak in 4 months and confirming the bullish trend.

Vincent