Crypto News– Last week, Litecoin witnessed a resurgence sparked by savvy LTC whales who seized the opportunity to buy the dip, driving a noteworthy 12% rebound toward the $66 mark by September 15. However, as the impending Federal Open Market Committee (FOMC) meeting looms on the horizon, these coin whales appear to have moderated their purchasing activity. The question now arises: What direction will coin price take following the Fed’s rate announcement scheduled for September 19?
Litecoin Price Emerges in Recovery Mode – Can It Retake 80 Dollars Following the Federal Reserve Meeting?
It’s worth noting that Litecoin whales were instrumental in orchestrating the recent price recovery. Data from on-chain sources indicates that whales holding substantial amounts of coins, ranging from 10,000 to 1 million coins, played a pivotal role in the recent price surge. Between September 10 and September 14, these significant holders accumulated an impressive 510,000 LTC coins, bolstering their holdings from 38.94 million LTC to 39.45 million LTC.
However, since then, these whales have adopted a more cautious approach, maintaining their balances at approximately the same levels. These whale investors, characterized by their substantial cryptocurrency holdings, typically exceeding $100,000 in value, often exert significant influence on market dynamics due to their trading activity.
At the current valuation of $65 per, the 510,000 LTC amassed by these whales over the past week equates to approximately $33.2 million. The accompanying chart visually highlights how LTC’s price trend gained momentum as the whale cohort initiated their buying spree last week. Interestingly, the LTC price has exhibited a degree of stagnation at the $65 level since their buying activity subsided.
It’s essential to acknowledge that whale investors are notably sensitive to shifts in interest rates as determined by central banks such as the US Federal Reserve, as these changes impact yields on alternative investments. Consequently, if the Fed opts to reduce rates or maintain them at the current 5.50%, in line with forecasts by Reuters economists, it could potentially trigger a bullish market response, prompting Litecoin whales to resume their buying activity.
In conclusion, the outcome of the Fed’s rate decision during the upcoming meeting holds the key to whether Litecoin’s price trajectory will experience a resurgence, potentially reigniting the interest of these influential whales in the market.
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