On-chain data suggests that Litecoin whales have recently been participating in purchases despite asset prices struggling.
Litecoin whale recently accumulated 100,000LTC
As pointed out by user Using data from on-chain analytics firm Santiment, we found that LTC whales have been buying recently as crypto prices have fallen.
The measure of relevance here is the “supply distribution”, which shows the total amount of Litecoin currently held by different wallet groups in the market.
Addresses or investors are categorized into these groups based on the number of coins they currently have in their balance. For example, a group of 1 to 10 coins includes holders who own at least 1 and at most 10 LTCs.
In the context of the current topic, whale populations are interesting. These entities can be defined as addresses that hold between 10,000 and 100,000 LTC. At current exchange rates, the lower end of the range is approximately $820,000 and the upper end is approximately $8.2 million.
Clearly, these holdings are quite large, which is why whales are considered influential on the network. Therefore, you may need to be careful as their actions may be reflected in the market in some way.
Here is a graph showing the trends in the supply distribution of Litecoin whales over the past month or so.
The value of this indicator seems to be trending upward in recent days. sauce: Santiment against X
As seen in the graph, it has been observed that the Litecoin supply distribution for investors holding between 10,000 and 100,000 LTC has increased recently. Specifically, between April 28 and May 4, the index rose by approximately 100,000 LTC ($8.2 million).
This increase in net accumulation by whales appears to be occurring in parallel with the decline in crypto prices. A similar trend occurred last month, with these large investors participating in heavy buying at the same time as the crash.
At the time, these holders also did some initial selling, which could have paved the way for the price to fall in the first place. But this time, there was no noticeable net distribution from the whales before the drawdown.
Interestingly, the whale buying reaction occurred at similar sub-$80 prices after these drawdowns, so these investors believe it’s worth buying crypto at these prices, at least in the long run. He seems to believe that there is.
Naturally, as long as the bullish sentiment among these influential companies continues, Litecoin could fuel a recovery. However, if these investors turn to selling, they could actually see more asset drawdowns, so this indicator may be worth keeping an eye on in the near future.
LTC price
Litecoin began a recovery rally the previous day, taking the coin back above $84, but the rally appears to have stopped as LTC is now back below $82.
The coin price seems to be moving generally sideways over the past few days | Source: LTCUSD on TradingView
Featured image from Georg Wolf on Unsplash.com, Santiment.net, Charts from TradingView.com
