Litecoin Whale Activity Spikes To 5-Week High: Reversal Or Continuation Signal?
Litecoin has gone by means of a value drawdown over the previous week, however on-chain information reveals whale exercise has shot as much as the very best degree in weeks.
Litecoin Whale Transaction Count Has Spiked Recently
According to information from on-chain analytics agency Santiment, the Litecoin Whale Transaction Count has witnessed a surge not too long ago. This indicator measures the whole variety of transfers occurring on the LTC community that contain a price of greater than $100,000. Generally, solely the whales are able to transferring quantities this huge with single transactions, so the metric’s worth is taken into account to signify the exercise of the big-money traders.
When the worth of the Whale Transaction Count rises, it means the whales are collaborating in the next quantity of switch exercise on the blockchain. Such a development could also be an indication that the asset is attracting consideration from the big merchants. On the opposite hand, the indicator happening implies the humongous entities could also be shedding curiosity within the cryptocurrency as they’re lowering their transaction exercise.
Now, right here is the chart shared by Santiment that reveals the development within the Litecoin Whale Transaction Count during the last couple of months:
As is seen within the above graph, the Litecoin Whale Transaction Count has seen a spike alongside the most recent decline within the asset’s value, indicating the volatility has induced exercise from the big fingers.
At the height of this spike, the metric hit a price of 503, comparable to the very best variety of whale-sized strikes since December tenth. As for what the surge within the indicator might imply for LTC, the reply is difficult to inform, for the reason that Whale Transaction Count consists of solely information for absolutely the variety of strikes being made by the whales and nothing associated as to if shopping for or promoting is extra dominant.
Past information might present some hints about what often tends to observe whale exercise spikes, nonetheless. “Historically, an asset has a considerably greater probability of reversal on whale spikes,” defined the analytics agency. This development was seen throughout the two Whale Transaction Highs from final month, occurring on December third and tenth. Both of those coincided with value tops for Litecoin.
It now stays to be seen whether or not the most recent spike within the indicator will develop into an indication of one other selloff or if it can result in a backside as an alternative.
LTC Price
Litecoin shot as much as a high of $84 final week, however bullish momentum fizzled out and its value opened this week with a plunge towards the $75 degree. The previous day has seen some upward motion, although, as LTC has returned to $78.
