Bitrabo Editorial
Lately, Litecoin may not be a top choice for many individual traders, but recent on-chain statistics indicate a different story for larger investors, often referred to as crypto whales. The on-chain analytics service Santiment reveals a remarkable uptick in whale activity on the Litecoin network starting in the last week of August.
While increased whale transactions are not entirely surprising for Litecoin, this recent spike is especially significant given the general decrease in whale trading activity across the entire cryptocurrency landscape.
Significant Increase in Whale Transactions
The insights garnered from the Santiment dashboard shed light on the rising engagement of larger investors with Litecoin. Notably, there has been a marked increase in daily whale transactions, defined as those exceeding $100,000.
At the end of August, approximately 800 of these high-value transactions occurred daily. By September 7, that number escalated to around 1,100, illustrating a surge of more than 25% in just a week.
This uptick in whale activity forms part of a larger pattern indicating a heightened interest in Litecoin. Alongside the increase in significant transactions, social media engagement surrounding Litecoin has also surged.
The Santiment’s findings also highlight a significant increase in discussions about Litecoin, rising from less than 0.3% at the end of August to roughly 2.922% by September 7.
Implications for Litecoin’s Future
According to Santiment, the significant rise in social media activity is noteworthy for anyone monitoring Litecoin, regardless of their stance on the cryptocurrency. The combination of increased whale transactions and a surge in social discussions indicates that Litecoin is likely catching the attention of both institutional investors and the wider crypto community in the near future.
Currently, Litecoin is trading at $62, down 2.6% in the past day. It is just above a crucial support level at $61. Prior to this drop, Litecoin had risen from $60 on August 28 to reach a 30-day peak of $68.
Although the recent price decline is notable, ongoing social engagement might provide the necessary impetus for Litecoin to initiate another upward trend.
The Litecoin/USD chart below illustrates that Litecoin is currently at the 0.382 Fibonacci support level from its $68 peak. A rise above the upper trendline could push Litecoin towards the next short-term resistance at $77. Conversely, falling below the lower trendline might see Litecoin decline to a range between $56 and $49.90. However, the emphasis remains on the pivotal $61 mark.
Image sourced from Pexels, chart provided by TradingView