Litecoin might be off the radar for many retail crypto traders, but on-chain data suggests otherwise for crypto whales. Insights from Santiment, a well-regarded on-chain analytics platform, indicate a notable surge in whale activity on the Litecoin blockchain since the final week of August.
While spikes in whale activity are not entirely new for Litecoin, this recent surge is particularly noteworthy as it occurs during a period of generally subdued whale trading activity across the broader cryptocurrency market.
Massive Surge In Whale Activity
The data provided by the Santiment dashboard offers valuable insights into Litecoin’s recent on-chain activity, particularly regarding the behavior of large-scale investors or crypto whales. Specifically, the data reveals a significant uptick in the number of daily whale transactions (those valued at over $100,000).
During the last week of August, the number of such transactions hovered around 800. However, by September 7, this figure had surged to approximately 1,100 transactions, representing a surge of over 25% in just one week.
This surge in whale transactions is not an isolated event but seems to be part of a broader trend of growing interest in Litecoin. In addition to the rise in large-value transactions, there has been a notable increase in the level of attention Litecoin has garnered across various social media platforms.
Santiment’s data also indicates a significant boost in the discussion rate surrounding Litecoin, which rose from under 0.3% at the end of August to approximately 2.922% by September 7.
What Does This Mean For Litecoin?
As noted by Santiment, such a notable rise in social media dominance is something to keep an eye on, “whether or not you are a fan of LTC.” The convergence of these factors, from increased whale activity to a sharp rise in social discussion, suggests that Litecoin may be on the radar of both major investors and the broader crypto community in the coming days or weeks.
At the time of writing, Litecoin is trading at $62 and is on a 2.6% decline in the past 24 hours. The crypto now finds itself trading just above a critical price floor of $61. Before this decline and during the social dominance noted by Santiment, Litecoin surged from $60 on August 28 before hitting a 30-day ceiling of $68.
Although the current price pullback is noteworthy, the continued momentum in social engagement could provide the fuel needed for Litecoin to stage another rally.
According to the Litecoin/USD chart below, Litecoin is now at the 0.382 Fib support level from the $68 ceiling. A break above the upper trendline would see Litecoin pushing up until it reaches the next short-term resistance at $77. However, a break below the lower trendline could see Litecoin falling to $56 up until $49.90. Nonetheless, $61 remains a critical focal point.
Featured image from Pexels, chart from TradingView
Powered by WPeMatico
