Litecoin has seen a surge of over 19% in the last day. Here’s what the network says could be behind the enhance.
Litecoin has outperformed the market with a robust rally over the past 24 hours
The past day saw a recovery across the cryptocurrency sector, but Litecoin in particular stood out with an impressive enhance of over 19%, pushing its price above the $120 mark.
Below is a chart showing what the recent performance of the coin has been.
Among the largest digital assets by market capitalization, only XRP (XRP) and Hedera (HBAR) have shown comparable returns to Litecoin in the last 24 hours. However, LTC still lags behind many coins in terms of weekly gains, with overall growth of just 16%.
As for what could provide fuel for the rally, perhaps the behavior of the cryptocurrency’s key investors could provide answers.
Recently they have been buying LTC sharks and whales
In the fresh one post on the X platform, the analytics company Santiment discussed the latest trend in the distribution of Litecoin shark and whale supplies. “Supply Distribution” here refers to a metric that tracks the total amount of LTC currently held in a given group of wallets.
Addresses or investors are divided into these cohorts based on the number of coins they carry in their balance. For example, the 1 to 10 coin group contains all wallets containing one to ten tokens of a given asset.
Two cohorts are of interest in the context of the current topic: sharks and whales. The total range for these investors can be defined as 10,000 LTC to infinity. The lower end of the range equates to a value of around $120,000 at current exchange rates, so the only holders eligible for these groups would be high-value holders.
Since each investor’s influence on the market increases as the number of coins they hold increases, it is worth paying attention to sharks and whales, as their movements can reflect on the cryptocurrency.
Here is a chart provided by the analytics firm that shows the trend in the distribution of Litecoin shark and whale supply over the past few months:
As you can see in the chart above, the total supply of Litecoin sharks and whales has increased recently, suggesting that these vast investors have been participating in net accumulation.
In total, the groups bought a total of 250,000 tokens (approximately $30 million) during the indicator’s surge last week. Given the timing, it is likely that bondholders had a role to play in the recent price rally.
This indicator can now be monitored in the coming days as a continuation of the uptrend could mean further upside for Litecoin. On the other hand, a decline may be a bearish signal.