Recent on-chain data indicates that Litecoin whales have collectively engaged in a buying spree, amounting to approximately $230 million. This significant investment surge suggests a potentially bullish outlook for the coin.
Whales of Litecoin Have Lately Seen Net Inflows Into Their Wallets
Over the past month or two, the Litecoin whales have seen significant net inflows into their addresses, per statistics from the market intelligence platform IntoTheBlock.
The "Large Holders Netflow" on-chain indicator, which monitors the net amount of Bitcoin coming into or going out of the aggregate wallets of investors holding at least 1% of the cryptocurrency's circulating supply, is the one that matters in this case.
"Large holders" are defined by IntoTheBlock as the asset's whale entities. Because they can move a lot on the network in a short amount of time, whales are typically seen as influential beings on the network.
When the Large Holders Netflow shows a positive value, it indicates that significant investors are currently accumulating a net amount of coins into their holdings, which often signals bullish sentiment for the coin's price.
Conversely, a negative indicator suggests that these whales are potentially involved in selling activities, which could lead to bearish implications for the asset.
According to data from an analytics firm, these large holders have acquired a total of 2,751,633 LTC over the past 30 days. At the current exchange rate, this accumulation is valued at approximately $230 million.
This surge in buying activity from large holders coincides with Litecoin's price consolidating around its recent lows following the crash in mid-April. This suggests that these whales view the current price levels of Litecoin as favorable entry points into the market.
Such behavior could be interpreted as a positive signal for the cryptocurrency, although the future trajectory of the asset's price remains uncertain. It would be prudent to keep an eye on this indicator, as a shift to negative values could indicate a bearish trend for Litecoin.
May 2024, Cryptoniteuae