Litecoin might be off the radar for many retail crypto traders, but on-chain data suggests if not for crypto whalesInformation provided by Santiment, a reputable on-chain analytics platform, indicates a notable increase in whale activity on the Litecoin blockchain since the last week of August.
While spikes in whale activity aren’t entirely new to Litecoin, this recent surge is particularly remarkable as it happens during a period of Whale trading activity down across the entire cryptocurrency market.
Massive increase in whale activity
THE data provided Santiment’s dashboard offers valuable insights into Litecoin’s recent on-chain activity, particularly as it relates 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 around 800. However, by September 7, this figure had increased to around 1,100 transactions, which represents an increase of more than 25% in a single week.
This increase in whale transactions is not an isolated event but appears to be part of a larger trend of growing interest in Litecoin. In addition to the increase in high-value transactions, there has been a notable increase in the level of attention that Litecoin has garnered on various social media platforms.
Santiment Data also indicates a significant increase in the discussion rate around Litecoin, which rose from less than 0.3% at the end of August to around 2.922% as of September 7.
What does this mean for Litecoin?
As Santiment noted, such a notable increase in social media dominance is something to watch, “whether you’re a fan of LTC or not.” The convergence of these factors, from increased whale activity to a sharp increase in social chatter, suggests that Litecoin could be on the radar of major investors and the broader crypto community in the coming days or weeks.
At the time of writing, Litecoin is trading at $62 and has seen a 2.6% decline in the last 24 hours. The cryptocurrency is now trading just above a critical price floor of $61. Prior to this drop and during the social dominance noted by Santiment, Litecoin surged from $60 on August 28 before hitting a 30-day high of $68.
While the current price pullback is notable, 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 sitting at the 0.382 Fibonacci support level from the $68 high. A break above the upper trendline would see Litecoin climb to the next short-term resistance at $77. However, a break below the lower trendline could see Litecoin drop to $56 all the way to $49.90. Still, $61 remains a critical focal point.
Featured image from Pexels, chart from TradingView
