Litecoin (LTC) Whales Move to Sell as Price Rally Stalls Despite ETF Review

Litecoin (LTC) is seeing a surge in bullish momentum, with its price climbing 10% in the past 24 hours. The recent rally came as the US Securities and Exchange Commission (SEC) reviewed the application for the Canary Spot Litecoin exchange-traded fund (ETF).

Cryptocurrency Litecoin (LTC) is experiencing a surge in bullish momentum, with its price surging 10% in the past 24 hours. This recent rally comes as the US Securities and Exchange Commission (SEC) begins reviewing the application for the Canary Spot Litecoin exchange-traded fund (ETF).

While LTC has confirmed a bullish double-bottom pattern, it is yet to decisively breach a key resistance level at $133. As the dust settles, market participants are divided in their outlook — whales are selling, while retail investors remain optimistic.

After a prolonged period of inactivity, Litecoin whales are finally making a move. As per the latest data, whale addresses, defined as those holding between 10,000 and 100,000 LTC, have sold over 230,000 tokens, valued at around $30 million, over the past 24 hours.

These large holders are capitalizing on the ETF-driven hype to book profits, signaling a possibility of short-term price volatility.

As the second-largest cryptocurrency by market capitalization, Litecoin is highly sensitive to news surrounding ETFs. While the SEC's review is a positive development, it does not guarantee approval. In fact, several other ETF applications have been pending for over a year now.

Moreover, whales are often known to act as trendsetters in the market. Their recent selling spree could indicate concerns about LTC's ability to sustain its rally. If this selling pressure continues, it may be challenging for retail investors to maintain the momentum, potentially leading to a retracement.

On the other hand, Litecoin's macro momentum is still favorable, and improving technical indicators are providing support. The Chaikin Money Flow (CMF), a crucial gauge of capital inflows and outflows, has risen and crossed above the zero line. This signifies growing buying pressure, which could bolster the potential for sustained gains.

Historically, rising CMF values have aligned with upward price movements, as increasing capital inflows indicate confidence among investors. If this trend continues, LTC may have the necessary support to break through its resistance level, shifting its trajectory toward higher price targets.

After the SEC's announcement, Litecoin (LTC) price surged by 10%, bringing it closer to a crucial resistance level of $133. However, breaking this barrier remains a challenge as selling pressure from whales introduces volatility into the market.

Despite forming a bullish double-bottom pattern, LTC failed to breach the two-month-old resistance and is currently trading at $128. The altcoin is still above the critical support level of $113, but as long as whale selling continues, LTC may continue consolidating below $133 in the short term.

A decisive move above $133 could trigger a broader breakout, pushing LTC toward $145. Overcoming this level would invalidate the current bearish-neutral sentiment, opening the door for a stronger recovery.

If bullish momentum accelerates, Litecoin could establish a higher range, reinforcing its position as one of the leading altcoins in the market.