On-chain data shows the Litecoin whales have participated in a significant amount of buying recently, a sign that could be bullish for LTC’s price.
Litecoin Whales Have Added Big To Their Holdings Recently
As explained by analyst Ali Martinez in a new post on X, the LTC whales have been busy buying during the last couple of days. The indicator of relevance here is the “Supply Distribution” from the on-chain analytics firm Santiment, which tells us about the amount of Litecoin that a given wallet group is holding.
Addresses or investors are placed into these cohorts based on the number of tokens that they are carrying right now. The 10 to 100 coins group, for example, includes all holders who own between 10 and 100 LTC.
In the context of the current topic, the whale group is of interest, which contains wallets with balance in the 100,000 to 1 million LTC range. At the current exchange rate, the lower bound of the cutoff converts to $10.4 million and the upper one to $104 million.
Thus, the only investors who would qualify for the group would be the particularly large ones. As the influence of any entity in the market rises the more coins that they hold, members of the cohort would be quite influential due to their massive holdings.
Because of this reason, the behavior of the whales can often be worth keeping an eye on. One way to keep track of the collective movements of this group is through the Supply Distribution.
Here is the chart shared by the analyst, that shows the trend in this indicator for the Litecoin whales over the past month:
The value of the metric seems to have witnessed a rapid increase in recent days | Source: @ali_charts on X
From the graph, it’s apparent that the Litecoin Supply Distribution of the 100,000 to 1 million LTC holders has registered a sharp jump recently, meaning that these large investors have been accumulating.
In total, the LTC whales have purchased a total of 430,000 LTC (worth almost $45 million at the current price) over the last 48 hours or so. The increase in the indicator has come after the cryptocurrency’s price has plummeted, so it would appear this cohort believes the dip to be an ideal buying opportunity.
The trend in the Supply Distribution of the whales isn’t the only bullish sign that Litecoin has seen recently, as Martinez has pointed out in another X post that the Market Value to Realized Value (MVRV) Ratio also signals strength for the coin.
The trend in the LTC MVRV Ratio over the last couple of years | Source: @ali_charts on X
The MVRV Ratio basically tells us about whether the Litecoin investors as a whole are in profit or loss. As displayed in the graph, the 200-day moving average (MA) of this metric has flipped positive recently, which suggests investor profitability has on average tended towards profits inside the window.
LTC Price
At the time of writing, Litecoin is floating around $105, down more than 16% over the last seven days.
Looks like the price of the coin has been moving sideways around its lows | Source: LTCUSDT on TradingView
Featured image from Dall-E, Santiment.net, chart from TradingView.com
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