Litecoin may be off the radar for many retail crypto traders, but on-chain data suggests that Otherwise for crypto whalesInsights from Santiment, a highly regarded on-chain analytics platform, indicate a significant increase in whale activity on the Litecoin blockchain since the last week of August.
While a surge in whale activity isn’t entirely new for Litecoin, this recent surge It is particularly worth mentioning As it happens during a general period Whale trading activity is subdued. In the broader cryptocurrency market.
A significant increase in whale activity
the Data provided The Santiment dashboard provides valuable insights into Litecoin’s recent on-chain activity, particularly with regards to the behavior of large-scale investors or crypto whales. Specifically, the data reveals a significant increase in the number of daily whale transactions (those valued at over $100,000).
During the last week of August, the number of such transactions was hovering around 800. However, by September 7, this number had risen to around 1,100 transactions, representing an increase of more than 25% in just one week.
This surge in whale transactions is not an isolated event, but rather appears to be part of a broader trend of increased interest in Litecoin. In addition to the surge in large-value transactions, there has been a noticeable increase in the level of interest Litecoin has gained across various social media platforms.
Santiment data This also indicates a significant increase in the rate of discussion surrounding Litecoin, which rose from less than 0.3% at the end of August to nearly 2.922% by September 7.
What does this mean for Litecoin?
As Santiment points out, this notable rise in social media dominance is something to watch, “whether you’re an LTC fan or not.” The convergence of these factors, from increased whale activity to a sharp rise in social discussions, suggests that Litecoin could be on the radar of both mainstream investors and the broader crypto community in the coming days or weeks.
At the time of writing, Litecoin is trading at $62, down 2.6% in the past 24 hours. The cryptocurrency now finds itself trading above a critical price level of $61. Prior to this drop and during the social dominance that Santiment referred to, Litecoin had 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 start another bull run.
According to the Litecoin/USD chart below, Litecoin is now at the 0.382 Fibonacci support level from the $68 ceiling. A break above the upper trend line will push Litecoin higher until it reaches the next short-term resistance at $77. However, a break below the lower trend line could send Litecoin down to $56 to $49.90. However, $61 remains a critical pivot point.
Featured image by Pexels, chart by TradingView
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