Litecoin may not be on the radar of many retail crypto traders, but on-chain data suggests otherwise for crypto whalesInsights from Santiment, a renowned on-chain analytics platform, indicate a notable increase in whale activity on the Litecoin blockchain since the last week of August.
While spikes in whale activity are not entirely new to Litecoin, this recent surge is particularly remarkable as it occurs during a period of generally modest whale trade on the broader cryptocurrency market.
Huge increase in whale activity
The data provided through the Santiment dashboard provides valuable insights into Litecoin’s recent on-chain activity, particularly regarding the behavior of large-scale investors, or crypto whales. In particular, the data reveals a significant increase in the number of daily whale transactions (which are valued at over $100,000).
In the last week of August, the number of such transactions hovered 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 increase in whale transactions is not an isolated event, but appears to be part of a broader trend of growing interest in Litecoin. In addition to the increase in large-value transactions, there has been a notable increase in the amount of attention Litecoin has received on various social media platforms.
Data from Santiment also indicates that there has been a significant increase in the discussion surrounding Litecoin, which rose from less than 0.3% in late August to around 2.922% on September 7.
What does this mean for Litecoin?
As Santiment notes, such a notable rise in social media dominance is something to keep an eye on, “regardless of whether you’re a fan of LTC or not.” The convergence of these factors, from increased whale activity to a sharp rise in social discussion, suggests that Litecoin could 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 down 2.6% over the past 24 hours. The crypto is now just above a critical price floor of $61. Before this drop and during the social dominance noted by Santiment, Litecoin rose from $60 on August 28 before reaching a 30-day ceiling of $68.
While the current price drop is notable, the continued momentum in social engagement could give Litecoin the fuel it needs to stage another rally.
According to the Litecoin/USD chart below, Litecoin is now at the 0.382 Fib support level of the $68 ceiling. A break above the upper trendline would push Litecoin higher until it reaches the next short term resistance at $77. However, a break below the lower trendline could see Litecoin drop to $56 to $49.90. Nevertheless, $61 remains a critical focal point.
Main image from Pexels, chart from TradingView