- Recent on-chain data suggests that Litecoin whales have been buying the asset despite its struggling price.
- These whales have reportedly accumulated 100,000 LTC recently, even as the cryptocurrency’s price has declined.
- The behavior of these influential entities could have a significant impact on the market.
Discover how Litecoin whales are influencing the market, accumulating 100,000 LTC recently despite the cryptocurrency’s declining price.
Litecoin Whales Accumulate Amid Price Decline
As highlighted by a Twitter user using data from on-chain analytics firm Santiment, Litecoin whales have been buying the cryptocurrency despite its falling price. The key indicator here is the “Supply Distribution,” which provides insight into the total amount of Litecoin held by different wallet groups in the market.
Understanding the Influence of Whales
Investors are divided into cohorts based on the number of coins they hold. The whale cohort, defined as addresses holding between 10,000 and 100,000 LTC, is of particular interest due to their significant holdings and potential influence on the market. The trend in the Supply Distribution of Litecoin whales over the past month shows an increase, suggesting that these entities believe the cryptocurrency to be a worthy long-term investment.
Whale Behavior and Market Impact
Interestingly, the whale buying activity has occurred at similar sub-$80 prices following market drawdowns, indicating a bullish sentiment among these influential entities. As long as this sentiment remains, Litecoin could potentially see a recovery push. However, if these investors start selling, further drawdown could follow for the asset.
Litecoin Price Outlook
Litecoin had started a recovery rally that took the coin back above $84, but it appears that the run has fizzled out as LTC is now back under $82. The price of the coin has been moving sideways over the last few days, and it remains to be seen how the actions of Litecoin whales will impact its future trajectory.
Conclusion
In conclusion, the recent buying activity of Litecoin whales, despite the cryptocurrency’s declining price, highlights their potential influence on the market. Their bullish sentiment could drive a recovery push for Litecoin, but a shift towards selling could lead to further price declines. As such, the behavior of these influential entities is something to watch closely in the near future.
