Litecoin whale activity surges to 5-week high: Signal of a reversal or continuation?
Litecoin has suffered price declines over the past week, but whale activity has surged to its highest level in weeks, according to on-chain data.
Litecoin whale trading volume has surged recently
The number of Litecoin Whale transactions has recently surged, according to data from on-chain analytics firm Santiment. This metric measures the total number of transfers taking place on the LTC network worth more than $100,000. Typically, only whales can move such large sums in a single transaction, so the metric’s values are considered indicative of the activity of high-net-worth investors.
An increasing value of Whale Transaction Count means that whales are engaging in a greater amount of transfer activity on the blockchain. This trend could be a sign that the asset is attracting interest from large traders. On the other hand, falling indicators mean that huge companies may lose interest in cryptocurrencies by reducing their trading activities.
Now here is a chart shared by Santiment showing the trend in the number of Litecoin Whale transactions over the past few months:
As can be seen in the graph above, the number of Litecoin Whale transactions has skyrocketed recently along with the decline in the asset’s price, indicating that it has triggered activity in volatile hands.
At the peak of this surge, the indicator hit a value of 503, the highest number of whale-sized movements since December 10. It’s hard to say what a spike in the indicator could mean for LTC. This is because whale trade counts only include data on the absolute number of movements of whales and no data regarding whether buying or selling is more dominant.
However, historical data can provide some hints about the trends that typically follow surges in whale activity. “Historically, assets are much more likely to reverse during whale surges,” the analytics firm explained. This trend was seen in two whale trading highs last month, on December 3rd and 10th. Both of these coincided with Litecoin’s highest prices.
Now, it is yet to be seen whether the indicator’s recent surge will turn out to be a sign of another selloff or will instead lead to a bottom.
LTC price
Litecoin soared to a high of $84 last week, but the bullish momentum disappeared and the price began this week plummeting to around $75. However, there was a slight upward trend last day as LTC returned to $78.
