While Litecoin may not be the focus for many retail traders in the crypto space, on-chain data implies the opposite for crypto whales. Insights from Santiment, a reputable on-chain analytics provider, reveal a significant increase in whale activity on the Litecoin blockchain since the last week of August.
Although fluctuations in whale activity are not uncommon for Litecoin, this recent rise is particularly significant, especially during a time of overall reduced whale trading activity in the broader cryptocurrency market.
Substantial Increase in Whale Activity
The data presented by the Santiment dashboard provides key insights into Litecoin’s recent on-chain activities, particularly concerning the actions of large investors or crypto whales. Specifically, the data highlights a remarkable increase in the number of daily whale transactions (those exceeding $100,000).
In the last week of August, the volume of such transactions was around 800. However, by September 7, this number had increased to about 1,100 transactions, marking a rise of over 25% in just one week.
This spike in whale transactions is not a standalone event, but rather part of a larger trend indicating growing interest in Litecoin. Alongside the rise in high-value transactions, there has been a discernible boost in the attention Litecoin has received across various social media channels.
Santiment’s findings further indicate a considerable increase in discussions about Litecoin, which rose from under 0.3% at the end of August to around 2.922% by September 7.
Implications for Litecoin
As highlighted by Santiment, such a significant increase in social media presence warrants attention, “regardless of your feelings about LTC.” The combination of these factors—greater whale activity and a sharp uptick in social discussion—suggests that Litecoin may be capturing the interest of both major investors and the wider crypto community in the near future.
At the time of this writing, Litecoin is priced at $62, reflecting a 2.6% drop in the last 24 hours. The cryptocurrency is now trading just above a crucial support level of $61. Prior to this downturn, during the period of increased social dominance indicated by Santiment, Litecoin rose from $60 on August 28 to reach a 30-day high of $68.
Despite the current price drop, the ongoing engagement in social channels could provide the catalyst necessary for Litecoin to initiate another upswing.
As seen in the Litecoin/USD chart below, Litecoin is currently positioned at the 0.382 Fibonacci support level from the $68 peak. A breach above the upper trendline may allow Litecoin to advance toward the next short-term resistance at $77. Conversely, a fall below the lower trendline could see Litecoin decline to the range of $56 to $49.90. Nonetheless, $61 remains a vital point of reference.
Featured image from Pexels, chart from TradingView
