Litecoin: THREE Reasons Why LTC Could Lead Altcoin Gains in Q4

Litecoin (LTC) is showing promising potential as it breaks away from the altcoin pack, supported by whale investments and increased network activity. As it gains momentum in Q4, many are considering LTC as a key player among cryptocurrencies.

Key Takeaways

Litecoin is demonstrating strength by gaining 11.83% compared to Bitcoin (BTC), driven by whale accumulation and a risk-off approach by traders.
The Total Value Locked (TVL) in Litecoin’s DeFi ecosystem has risen by 12%, with daily on-chain transactions reaching $15.1 billion; there are 6% more wallets holding over 100k LTC, indicating long-term investment interest.
LTC is solidifying its position above key support levels, particularly at $108, suggesting potential for future growth in Q4.

Litecoin (LTC) is distancing itself from the wider altcoin market. Throughout November, LTC has risen by 4.8%, positioning itself as one of the few cryptocurrencies starting the month on a strong note. In contrast, Ethereum (ETH) has faced a downturn of 10%, indicating a lack of altcoin rotation during this market cycle.

Given this context, LTC’s relative strength becomes apparent. It has shown robust momentum against Bitcoin (BTC), climbing 11.83%. This positioning could prove beneficial for traders looking to hedge during uncertain market conditions.

LTC

Source: TradingView (LTC/USD)

Litecoin LTC

On-Chain Performance: A Strong Momentum Indicator

So, is this performance reflected on-chain?

LTC is seeing notable growth in its DeFi metrics, with a 12% rise in Total Value Locked (TVL), reaching $2.1 million. This movement brings an additional $240,000 into Litecoin's DeFi ecosystem, enhancing liquidity and demonstrating increased activity on the blockchain.

Why is this essential? An uptick in TVL indicates that more funds are being committed to the network, creating a divergence from mere short-term trading activities. This suggests that LTC is experiencing significant long-term investments.

LTC has established firm resistance around the $108 mark, which appears more like a period of consolidation rather than a full-scale sell-off. If it manages to break through this barrier, even amid a risk-off environment, Litecoin could emerge as a serious contender for Q4.

Whale Accumulation and Record Volumes Propel Litecoin Forward

LTC is gathering momentum at critical price points, signaling strong market conviction.

On-chain data from Santiment reveals why LTC's bullish trend might persist. In the last three months, the number of wallets containing over 100k LTC has increased by 6%, indicating that larger investors are accumulating the asset. Simultaneously, the daily on-chain volume has soared to a record high of $15.1 billion, reflecting significant activity on the network. These developments suggest that LTC's recent gains are underpinned by genuine participation rather than speculative hype.

Litecoin

Source: Santiment

As a result, Litecoin has managed to keep its losses in Q4 to just 7.5%. In contrast, ETH has dropped 17%. This highlights how whale accumulation and network growth bolster LTC's relative strength in the competitive market. If this trend continues, surpassing the $102 resistance level could mark only the beginning of LTC's upward trajectory.

Going forward, Litecoin appears well-positioned to maintain its momentum. With LTC currently leading among top-cap altcoins, sustained efforts could propel it into the ranks of the most notable gainers of Q4, making it an essential asset to keep an eye on.