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Chain data shows that transactions of Litecoin whales recently peaked in 2023. This is how it may affect the price of the cryptographer.
Litecoin deals valued at more than a million dollars have skyrocketed.
According to data from the on-chain analytics firm Santiment, the last two spikes led to significant rises in the price. The relevant indicator here is the “whale transaction count,” which measures the total number of Litecoin transactions taking place on the blockchain that involve coins worth at least $1 million.
When the value of this metric is high, it means there are a large number of whale transactions happening on the network right now. Such a tendency leads us to believe that these gigantic holders are currently engaged in commercial activities.
Because the volume of parts involved in such transfers is so large, a high number of transactions with whales can sometimes have a significant impact on the market. Consequently, when the value of the indicator is high, LTC is likely to experience more volatility than usual.
Now, here is a graph that shows the trend in the number of transactions of Litecoin whales over the last several months:
The value of the metric seems to have been quite high in recent days | Source: Santiment on Twitter
As displayed in the above graph, the Litecoin whale transaction count has recently spiked and hit the highest values observed since December 28. It suggests that the whales are back in operation.
In the chart, Santiment also highlighted trends where LTC prices have followed the last two or three times this cohort has been highly active. It looks like the most recent instance was last month when LTC’s price was observing some high volatility.
As a result of these numerous transactions with whales, litecoin quickly formed a local bottom and then recovered by about 33 per cent. Another example of this trend was the collapse of crypto ftx trading, where again high metric values accompanied by a significant volatility in the value of ltc. After this instance thus, crypto has benefited from a strong upward trend as the price has increased to 37% in the coming weeks.
Because Litecoin whales are currently active, crypto may soon witness such high volatility. Though, the degree to which this volatility is likely to affect the price of the coin is uncertain, as if they could buy at this time (which would be bullish), they could just as easily sell with these deals (of course a bear factor).
However, if the last two occurrences of this model are something to go for, litecoin could just go see races similar to the ones that have followed these previous instances.
In some other news, the LTC mining hashrate (a measure of the total amount of computing power connected by the miners to the network) hit a new all-time high earlier today, which may also prove to be constructive for the price.
Litecoin's Hashrate hit an all time high today!
?798.43 TH/s?
— Litecoin (@litecoin) January 26, 2023
As of this writing, Litecoin is trading in the $89 range, up 11% last week.
Looks like the value of the asset has gone stale in the last few days | Source: LTCUSD on TradingView
