Litecoin has seen a sharp rise of over 19% in the last day. Here’s what, according to on-chain data, could be behind the rally.
Litecoin has outperformed the market with a sharp increase in the last 24 hours
The past day has seen a recovery for the cryptocurrency sector as a whole, but Litecoin in particular has stood out with its impressive rally of over 19%, which has taken its price beyond the $120 mark.
Below is a chart showing what the recent performance of the coin has looked like.
Among top digital assets by market cap, only XRP (XRP) and Hedera (HBAR) have shown comparable returns to Litecoin over the past 24 hours. However, in terms of weekly gains, LTC is still lagging behind many coins with an overall increase of only 16%.
As for what could be providing the fuel for the rally, perhaps the behavior of key cryptocurrency investors could provide some answers.
LTC Sharks and Whales Have Been Buying Recently
in a new mail On X, on-chain analytics firm Santiment has discussed the latest trend in Litecoin shark and whale supply distribution. “Supply Distribution” here refers to an indicator that tracks the total amount of LTC a given wallet pool holds at the moment.
Addresses or investors are divided into these cohorts based on the number of coins they have in their balance. The 1 to 10 coins group, for example, contains all wallets containing between one and ten tokens of the asset.
In the context of the current topic, two cohorts are of interest: sharks and whales. The combined range for these investors could be defined from 10,000 LTC to infinity. The lower end of the range is equivalent to around $120,000 at the current exchange rate, so the only holders that would qualify for these groups would be the larger ones.
As any investor’s influence on the market increases the more coins they own, it is worth keeping an eye on sharks and whales as their movements may end up being reflected in the cryptocurrency.
Now, here is the chart shared by the analytics firm showing the trend in Litecoin shark and whale supply distribution over the past few months:
As shown in the chart above, Litecoin sharks and whales have seen their total supply increase recently, suggesting that these large investors have been participating in net accumulation.
In total, groups have purchased a total of 250,000 tokens (around $30 million) during this indicator surge over the past week. Given the timing, these holders likely had a role to play in the latest price rally.
The metric could now be monitored in the coming days as a continuation of the uptrend may mean a further bullish outcome for Litecoin. A drop, on the other hand, could be a bearish signal.
