Litecoin (LTC) Up 19%: What’s Behind the Rebound?
Litecoin has seen a sharp rise of over 19% over the past day. Here’s what could be behind this rally, according to on-chain data:
Litecoin has overwhelmed the market with a strong surge over the past 24 hours.
While the entire cryptocurrency sector showed signs of recovery over the past day, Litecoin in particular stood out with an impressive rally of over 19%, pushing its price above $120.
Below is a chart showing how the coin has performed recently.
Among the top digital assets by market capitalization, only XRP (XRP) and Hedera (HBAR) have seen similar returns to Litecoin over the past 24 hours. However, in terms of weekly gains, LTC still lags behind many coins, with an overall gain of only 16%.
As for what could be driving the rally, perhaps the actions of key investors in cryptocurrencies can provide some answers.
LTC Sharks and Whales Have Been Buying Recently
On-chain analytics firm Santiment discussed the latest trends in the supply distribution of Litecoin sharks and whales in a new post on X. “Supply Distribution” here refers to an indicator that tracks the total amount of LTC currently held by a specific group of wallets.
Addresses or investors are divided into these groups based on the number of coins they have in their balance. For example, the 1-10 coin group includes all wallets that hold 1-10 tokens of an asset.
In the context of the current topic, two groups are of interest: sharks and whales. The combined range of these investors can be defined from 10,000 LTC to infinity. The lower end of the range is equivalent to approximately $120,000 at current exchange rates, so the only holders who would qualify for this group would be the larger holders.
An investor’s influence in the market increases the more coins they hold, so the movements of sharks and whales are worth paying attention to as they could eventually be reflected in cryptocurrencies.
Now, here is a chart shared by an analytics firm showing the supply distribution trends of Litecoin sharks and whales over the past few months:
As you can see in the graph above, Litecoin sharks and whales have been seeing an increase in total supply recently, suggesting that these large investors are engaging in net accumulation.
In total, the group bought a total of 250,000 tokens (worth about $30 million) during last week’s surge in indicators. Considering the timing, it is likely that these holders have played a role in the recent price rise.
The metric could be monitored in the coming days as a continuation of the upward trend could result in further bullish results for Litecoin. On the other hand, a decline may be a bearish signal.
