Litecoin (LTC) Jumps 19%: What’s Behind The Rally?
Litecoin has gained more than 19% in the past day. Here are the possible reasons behind the rally shown by on-chain data.
Litecoin surges strongly over the past 24 hours, outperforming the market
The entire cryptocurrency space has seen a resurgence over the past day, but Litecoin in particular stands out with an impressive gain of over 19%, pushing the price past the $120 mark.
The chart below shows the coin’s recent performance.
Among the top digital assets by market capitalization, only XRP (XRP) and Hedera (HBAR) have shown comparable returns to Litecoin in the past 24 hours. But in terms of weekly profits, LTC still lags behind many currencies, with overall growth of only 16%.
As for what might be powering the rally, perhaps the behavior of major cryptocurrency investors can provide some answers.
LTC Sharks & Whales have been buying lately
in a new postal At X, on-chain analytics firm Santiment discusses the latest trends in Litecoin sharks and whales supply distribution. this”supply allocation” What this refers to is a metric that tracks the total amount of LTC currently held by a given wallet group.
Addresses or investors are divided into these groups based on the number of tokens they carry in their balances. For example, the 1 to 10 token group contains all wallets holding 1 to 10 asset tokens.
In the context of the current topic, two groups deserve attention: sharks and whales. The total range for these investors can be defined from 10,000 LTC to infinity. The lower end of the range is about $120,000 at current exchange rates, so only larger holders are eligible to join these groups.
As investors gain more influence over the market the more tokens they hold, sharks and whales are worth keeping an eye on as their movements may ultimately be reflected on cryptocurrencies.
Now, here’s a chart shared by the analyst firm showing Litecoin sharks and whales’ supply distribution trends over the past few months:
As shown in the chart above, the total supply of Litecoin sharks and whales has increased recently, indicating that these large investors have been participating in net Bitcoin trading. accumulation.
Overall, these groups purchased a combined 250,000 tokens (approximately $30 million) during last week’s spike in the metric. Given the timing, it’s likely these holders played a role in the recent price surge.
This indicator can now be monitored in the coming days, as the continuation of the uptrend could mean further bullishness for Litecoin. On the other hand, a drop could be a bearish signal.
