Litecoin (LTC) Whales Make a Splash as Social Dominance Soars, What's Next?

Litecoin might be off the radar for many retail crypto traders, but on-chain data suggests otherwise for crypto whales.

Cryptocurrency traders might be paying less attention to Litecoin (CRYPTO: LTC) in their retail dealings, but on-chain data suggests that crypto whales are keeping a close eye on the digital asset.

According to insights from Santiment, a leading on-chain analytics platform, there has been a massive surge in whale activity on the Litecoin blockchain, especially since the final week of August.

Although spikes in whale activity on the Litecoin blockchain are not entirely new, this recent surge is particularly noteworthy because it occurs during a period of generally subdued whale trading activity across the broader cryptocurrency market.

The data from the Santiment dashboard provides a deeper understanding of Litecoin’s recent on-chain activity, especially regarding the behavior of large-scale investors or crypto whales.

Specifically, the data reveals a significant uptick in the number of daily whale transactions (those valued at over $100,000). During the last week of August, the number of such transactions hovered around 800. However, by September 7, this figure had surged to approximately 1,100 transactions, indicating a surge of over 25% in just one week.

This recent surge in whale transactions is not an isolated event but seems to be part of a broader trend of growing interest in Litecoin.

In addition to the rise in large-value transactions, there has been a notable increase in the level of attention Litecoin has garnered across various social media platforms. Santiment’s data indicates a significant boost in the discussion rate surrounding Litecoin, which rose from under 0.3% at the end of August to approximately 2.922% by September 7.

As Santiment notes, such a massive surge in social media dominance is something to watch out for, “whether or not you are a fan of LTC.” The convergence of these factors, from increased whale activity to a sharp rise in social discussion, suggests that Litecoin may be on the radar of both major investors and the broader crypto community in the coming days or weeks.

At the time of writing, Litecoin is trading at $62 and is down by 2.6% in the past 24 hours. The crypto is now trading just above a critical price floor of $61. Before this decline and during the social dominance noted by Santiment, Litecoin surged from $60 on August 28 before hitting a 30-day ceiling of $68.

While the current price pullback is noteworthy, the continued momentum in social engagement could provide the fuel needed for Litecoin to stage another rally.

According to the Litecoin/USD chart below, Litecoin is now at the 0.382 Fib support level from the $68 ceiling. A break above the upper trendline would see Litecoin pushing up until it reaches the next short-term resistance at $77. However, a break below the lower trendline could see Litecoin falling to $56 up until $49.90. Nonetheless, $61 remains a critical focal point.

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