Litecoin's ETF Rally Meets Whale Resistance as $30M Exits Market

Litecoin ( LTC ) has experienced a notable increase in value, rising by 10% over the past 24 hours. This surge coincides with the US Securities and Exchange Commission's (SEC) review of the Canary Spot Litecoin exchange-traded fund (ETF) application.

Whales have adopted a cautious stance amid the price increase. On-chain data shows that addresses holding between 10,000 and 100,000 LTC have liquidated over 230,000 tokens, equating to approximately $30 million. These large holders are taking advantage of the ETF-driven enthusiasm to secure gains, indicating potential short-term price instability.

Despite the optimistic outlook tied to a potential Litecoin ETF, uncertainty lingers. With substantial influence on market trends, the recent selling spree by whales raises concerns about LTC's ability to maintain its upward trajectory. Continued selling pressure may hinder retail investors from sustaining momentum, possibly leading to a price correction.

Litecoin's broader momentum remains favorable, bolstered by improving technical indicators. The Chaikin Money Flow (CMF), an essential measure of capital movements, has surpassed the zero mark. This shift suggests increased buying interest, enhancing the likelihood of prolonged gains.

Historically, rising CMF values align with upward price trends, as they reflect growing investor confidence. Should this trend persist, LTC might find the support needed to overcome its resistance level, potentially setting the stage for heightened price targets.

The surge in Litecoin's price was spurred by the SEC's decision to review the Canary Spot LTC ETF application, resulting in a 10% rise and nearing a resistance level of $133. However, breaching this limit remains challenging, with whale-induced selling pressure introducing market volatility.

Despite confirming a bullish double-bottom pattern, Litecoin has yet to break the two-month resistance and is trading at $128. It stands above the crucial support level of $113, but ongoing whale sales could confine LTC below $133 in the near term.

A clear breakout above $133 might initiate a larger upward movement, potentially elevating LTC to $145. Surpassing this threshold would nullify current bearish-neutral sentiments, enabling a stronger recovery. If bullish momentum intensifies, Litecoin could establish a higher trading range, solidifying its status as a leading altcoin.