Price forecast for litecoin: LTC holds steady after a deep fall, opening up a bounce back signal.

The price of Litecoin (LTC) is making an effort to bounce back, currently trading above the 106 USD level on Wednesday, after starting the week in the red. Supply distribution data shows that a "whale" has taken advantage of the recent pullbacks to accumulate more Litecoin. Technically, the outlook for a rebound remains intact as long as the key support zone has not been broken down.

###LTC whales take advantage of the price drop to accumulate coin

Supply distribution data from Santiment is reinforcing the positive outlook for Litecoin. Statistics show that the whale group holding between 100,000 and 1 million LTC (red line) has managed to accumulate an additional 660,000 tokens since September 20. In contrast, the group holding between 1 million and 10 million LTC (yellow line) has sold approximately 580,000 tokens during the same period.

This trend indicates that the large whale group may have entered the "capitulation" phase (, while the smaller group skillfully seizes the opportunity to accumulate Litecoin at a discounted price zone.

![])https://img-cdn.gateio.im/webp-social/moments-746137f5601ed9a6381239ea531ffabf.webp(Supply distribution chart for LTC | Source: SantimentAt the same time, the Age Consumed index from Santiment is also sending positive signals. The spikes in this index reflect the movement of long-dormant tokens — an important indicator for identifying local bottoms or tops in the short term.

With Litecoin, history has shown that the price usually bounces back after each Age Consumed explosion, when investors withdraw tokens from exchanges and transfer them to private wallets, thereby reducing selling pressure. The most recent increase, occurring on Wednesday, is suggesting that LTC is preparing for a new bounce back.

![])https://img-cdn.gateio.im/webp-social/moments-89a1b0b7fda066e50c71e166aea5ceb3.webp(LTC Age Consumed Index Chart | Source: Santiment###Litecoin Price Forecast: LTC may bounce back if it holds support.

The price of Litecoin opened the week with strong selling pressure, plummeting over 7% on Monday and closing below the 61.8% Fibonacci retracement level at 107.09 USD ) from the April low of 63.08 USD to the August high of 134.29 USD (. On Tuesday, LTC bounced back slightly after touching the 200-day Exponential Moving Average (EMA) at 103.24 USD.

Notably, the 200-day EMA nearly coincides with many other important technical levels, forming a key support zone for the reversal scenario. The control point )POC( of the volume profile is located at 102.62 USD – an area with the thickest liquidity since November 2024. In addition, the 50% Fibonacci retracement level at 98.68 USD along with the upward trend line formed since the beginning of April further reinforces the strength of this support zone.

![])https://img-cdn.gateio.im/webp-social/moments-13ec94d64032d5528bd008507904a0f5.webp(LTC/USDT Daily Chart | Source: TradingView At the time of writing on Wednesday, LTC is trading around 106 USD, continuing its bounce back efforts. If it holds above the mentioned support zone, the price could extend its rally and aim for the next resistance at 130 USD.

However, the relative strength index )RSI( on the daily frame is currently at 39, indicating that the bears still have the upper hand. A sustainable bounce back is only truly confirmed when the RSI exceeds the neutral threshold of 50. Conversely, if LTC falls below the 50% Fibonacci retracement level at 98.68 USD, selling pressure could pull the price back to the weekly support at 96.30 USD.

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