Will Litecoin whales make large deposits to Binance, extending LTC’s 3% drop?

On-chain data shows that Litecoin whales have made large deposits on cryptocurrency exchange Binance, which could push the price of the coin lower.

Litecoin Whale transferred 100,000 LTC to Binance today

According to data from a cryptocurrency transaction tracking service: whale alertOver the past day, large transfers have been discovered on the Litecoin network.

The transaction involved the movement of 100,000 LTC across the blockchain, worth over $7 million USD at the time of the move. Because the scale of the move is so large, there is a high possibility that there is a whale individual behind it.

In general, whale migration is something to watch out for as it can cause ripples in the market. However, how such massive holder movements will affect the assets depends on the intentions behind them.

Here are some additional details about the latest Litecoin whale transfer that may give investors a hint as to why they made the move:

Looks like the transaction only required a negligible fee of 0.008 LTC ($0.56) to be possible | Source: Whale Alert

As shown above, in this move the whale transferred 100,000 LTC to a wallet associated with cryptocurrency exchange Binance. The sending addresses were all unknown wallets not connected to a centralized platform.

These wallets are usually the investor’s address. Transactions like this where coins move from a self-managed wallet to an exchange are called ‘exchange inflows’.

Whale’s recent influx of exchanges suggests investors were looking to use one of the platform’s services, which could include selling. Therefore, the transfer could be bad news for Litecoin.

LTC is down 3% in the last 24 hours despite the market surge.

While most cryptocurrency sectors enjoyed gains on the final day, Litecoin was strange in posting negative returns.

As you can see in the chart below, LTC plummeted from the $73 level to the $68 level during the recent decline.

The value of the asset seems to have gone through a rollercoaster in the last two days | Source: LTCUSD on TradingView

Litecoin has recorded a slight bounce since its lows and is back above $70. However, despite this increase, the coin is still down about 3% in the last 24 hours.

Considering the timing of the Binance inflow transaction by whales, it is possible that it was ultimately a move to sell because it occurred at the same time as the cryptocurrency’s rebound.

Whales may be taking advantage of this small surge to exit assets and potentially move on to greener pastures that the rest of the market seems to offer.

When it comes to market capitalization, Litecoin has fallen to 20th place in the list of top cryptocurrencies. This means there will be 19 bigger digital assets than there are now. There is still some gap between LTC and 21st-placed Uniswap (UNI), so the coin may not be in danger of falling further, at least for now.

The market cap of the asset appears to be $5.2 billion at the moment | Source: CoinMarketCap

Featured image by Thomas Lipke on Unsplash.com, chart by TradingView.com

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