Litecoin’s price dropped last week, but on-chain data shows whale activity has surged to its highest level in weeks.

The number of transactions on Litecoin Whale has increased recently

According to data from an on-chain analytics company Saintlythe number of transactions on Litecoin Whale has seen a acute raise recently. This metric measures the total number of transfers occurring on the LTC network with a value exceeding $100,000. Generally, only whales are able to move such immense amounts in single trades, so the metric value is believed to reflect the activity of big-money investors.

When the value of a whale’s transaction counter increases, it means that the whales are participating in more transfer transactions on the blockchain. Such a trend may be a sign that an asset is attracting the attention of immense traders. On the other hand, a decline in the indicator means that immense entities may be losing interest in the cryptocurrency as they limit their trading activity.

Here is a chart provided by Santiment that shows the trend of Litecoin Whale transaction volume over the last few months:

As you can see in the chart above, the number of Litecoin Whale trades has seen a acute raise with the recent drop in the asset’s price, indicating that the volatility has been triggered by large hand activity.

At its peak, the gauge hit 503, representing the most whale-sized moves since December 10. As for what the raise in the indicator could mean for LTC, the answer is hard to say because the whale trade count only includes data on the absolute number of moves the whales make and has no relationship to whether buying or selling is dominant.

However, past data can provide clues about what typically follows a surge in whale activity. “Historically, the probability of reversal is much higher for whaling assets,” the analyst firm explained. This trend was evident during Whale’s two trading peaks last month, which occurred on December 3 and 10. Both coincided with Litecoin price peaks.

Time will tell whether the indicator’s recent spike will be a sign of another sell-off or will lead to a bottom.

LTC price

Last week, Litecoin reached a high of $84, but the bullish momentum faded and its price started this week falling towards the $75 level. However, there was some bullish action last day as LTC returned to $78.