Litecoin may be off the radar for many retail crypto traders, but on-chain data suggests otherwise for crypto whales. Insights from Santiment, a popular on-chain analytics platform, show a notable spike in whale activity on the Litecoin blockchain since the last week of August.
While a spike in whale activity is nothing new for Litecoin, this recent spike comes at a time of general suppression of whale trading activity across the broader crypto market. , especially noteworthy.
Whale activity increases rapidly
The data provided by the Santiment dashboard provides valuable insight into Litecoin’s recent on-chain activity, particularly the behavior of large investors and crypto whales. Specifically, the data reveals that the number of daily whale trades (valued over $100,000) has increased significantly.
In the last week of August, the number of such transactions hovered around 800. But by September 7, that number had jumped to about 1,100 transactions, an increase of more than 25% in just one week.
This spike in whale trading is not an isolated event, but appears to be part of a broader trend of increasing interest in Litecoin. In addition to the increase in large-value transactions, Litecoin has seen a significant increase in the level of attention it has received on various social media platforms.
Santiment data also shows that the percentage of discussions surrounding Litecoin has increased significantly, rising from less than 0.3% at the end of August to around 2.922% by September 7th.
What does this mean for Litecoin?
As Santiment noted, such a remarkable rise in social media dominance is noteworthy “whether you’re a fan of LTC or not.” A confluence of factors, from increased whale activity to a sharp rise in social debate, means that Litecoin will become the focus of both major investors and the broader crypto community in the coming days and weeks. This suggests that it may attract attention.
LTC’s market capitalization is currently $4.6 billion. Chart: TradingView
At the time of writing, Litecoin is trading at $62, down 2.6% in the past 24 hours. It turns out that the cryptocurrency is currently trading just above the key floor of $61. Before this decline, and during the social advantage noted by Santiment, Litecoin soared from $60 on August 28th, before hitting a 30-day high of $68.
While the current price drop is noteworthy, continued momentum in social engagement could be the fuel Litecoin needs to make further gains.
According to the Litecoin/USD chart below, Litecoin is currently at the 0.382 Fib support level from the $68 ceiling. A break above the upper trend line will allow Litecoin to move higher until it reaches the next short-term resistance level at $77. However, if it breaks below the lower trendline, Litecoin could fall to $56 and reach a maximum of $49.90. Nevertheless, $61 remains a key focus.
Featured images from Pexels, charts from TradingView
