Litecoin may not be on the radar of many retail cryptocurrency traders, but on-chain data suggests otherwise for crypto whales. Insights from Santiment, a respected on-chain analytics platform, indicate a significant boost in whale activity on the Litecoin blockchain since the last week of August.
While whale activity is nothing fresh for Litecoin, the recent surge is particularly noteworthy because it takes place during the general period suppressed whaling trade activity in the broader cryptocurrency market.
Huge boost in whale activity
This data provided The Santiment dashboard offers valuable insight into recent Litecoin on-chain activity, especially regarding the behavior of large-scale investors or crypto whales. This data reveals a significant boost in the number of daily whale transactions (worth over $100,000).
In the last week of August, the number of such transactions hovered around 800. However, by September 7, this number had increased to around 1,100 transactions, an boost of over 25% in just one week.
This boost 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 boost in high-value transactions, there has been a noticeable boost in the level of attention Litecoin has attracted on various social media platforms.
Data Santiment also indicates a significant boost in Litecoin talk, which rose from under 0.3% in behind schedule August to around 2,922% by September 7.
What does this mean for Litecoin?
As Santiment noted, such a significant boost 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 surge in social discussion, suggests that Litecoin could find itself on the radar of both mainstream investors and the broader cryptocurrency community in the coming days or weeks.
At the time of writing, Litecoin is trading at $62 and is down 2.6% in the last 24 hours. The cryptocurrency is now trading just above the critical $61 price level. Before this drop and during the social dominance seen by Santiment, Litecoin rose from $60 on August 28 before reaching a 30-day high of $68.
While the current price correction is noteworthy, the ongoing trend of increasing social engagement could provide the fuel needed to fuel another surge in Litecoin value.
According to the Litecoin/USD chart below, Litecoin is currently trading at the 0.382 Fib support level off the $68 ceiling. A break of the upper trendline would see Litecoin rally until it reaches the next short-term resistance at $77. However, a break of the lower trendline could see Litecoin fall to $56 and all the way to $49.90. Nevertheless, $61 remains a critical pivot point.
Featured image from Pexels, chart from TradingView
