Within the vast ocean of cryptocurrency, an undercurrent of steady bullish activity has been detected. Recent on-chain data reveals that Litecoin whales, or large-scale holders of the cryptocurrency, have embarked on a monumental buying spree amounting to a staggering $230 million. This tidal wave of activity could potentially propel the coin’s value upwards.
Over the last month, the market intelligence platform IntoTheBlock has been steadily observing vast net inflows into the wallets of these so-called whales. To identify this activity, the platform relies on an on-chain indicator known as the “Large Holders Netflow.” This utilizes the ebb and flow of Bitcoin, tracking the quantity entering or exiting the composites of wallets owned by those who hold a minimum of 1% of the currency’s circulating supply.
These large scale investors, colloquially nicknamed as ‘whales’, wield a substantial amount of influence over the network due to their ability to manipulate extensive volumes of currency over remarkably short periods. A positive value within the Large Holders Netflow indicators signifies that these investors currently have a net inflow of coins into their wallets. This activity could potentially cause a surge in the price of the coin.
However, it’s not always calm waters in the cryptocurrency sea. A negative indicator would suggest a large-scale sell-off, which could plunge the asset into the bearish territory. Interestingly, the Litecoin Large Holders Netflow has been exhibiting decidely positive values in recent times, as showcased in data charts. This indicates that the whales’ wallets have been benefitting from substantial net deposits.
A deep dive into the data from IntoTheBlock reveals an accumulation of 2,751,633 Litecoin (LTC) by these large holders over the past thirty days. Given the current exchange rate, this accumulation equates to an impressive $230 million. The activity peaked significantly on the 10th of this month, with a purchase of 900,000 LTC taking place – the highest daily amount tallied since February and contributing to a third of the total accumulation for the past month.
This recent investment surge comes at a crucial time as the asset’s price has been hovering around its lows following a downturn in mid-April. The whales’ heavy investments might suggest an assertion that the current Litecoin prices present an opportune entry point into the coin market.
While the recent buying frenzy could potentially be a bullish harbinger for the cryptocurrency, the development of the asset’s price in the immediate future remains to be seen. Nevertheless, the Large Holders Netflow indicator is definitely worth keeping an eye on. Should the tide turn and its value plunge into the negative, we could be looking at a bearish downfall of the cryptocurrency.
At this time, Litecoin seems to be holding its own. Over the last few weeks, it has adhered to its range and is currently fluctuating around a price of $84.
