Litecoin (LTC) Jumps 19%: What’s Behind This Rally? cryptoforbs

Litecoin saw a sharp increase of over 19% in the past day. Here’s what on-chain data says may be behind the rally.

Litecoin has outperformed the market with a strong rally over the past 24 hours

The past day has seen a recovery from the cryptocurrency sector as a whole, but Litecoin in particular stood out with its impressive rise of over 19%, pushing its price beyond the $120 mark.

Below is a chart showing what the recent performance of the coin has looked like.

Among the top digital assets by market cap, only XRP (XRP) and Hedera (HBAR) have shown similar returns to Litecoin in the past 24 hours. In terms of weekly gains, LTC still lags behind many coins with an overall gain of only 16%.

As for what could provide the fuel for the rally, the behavior of major cryptocurrency investors may provide some answers.

LTC sharks and whales have been purchased recently

In new mail On X, on-chain analytics firm Santiment discussed the latest trend in supply distribution for Litecoin sharks and whales. “Supply Distribution” here refers to an indicator that tracks the total amount of LTC held by a particular wallet group at the moment.

Addresses or investors are divided into these groups based on the number of coins they hold in their balance. For example, the coin set 1 to 10 contains all wallets that contain between one and ten asset tokens.

In the context of the current topic, there are two groups of interest: sharks and whales. The common range for these investors can be defined as 10,000 LTC to infinity. The lower end of the range is equivalent to about $120,000 at the current exchange rate, so the only holders who will qualify for these pools are high-volume holders.

Since any investor’s market influence rises the more coins he holds, it can be worth keeping an eye on sharks and whales as their movements may eventually be reflected in the cryptocurrency.

Now, here is the chart shared by the analytics company that shows the trend in the supply distribution of Litecoin sharks and whales over the past few months:

As shown in the chart above, Litecoin sharks and whales have seen an overall rise in supply recently, suggesting that these large investors have been engaging in net accumulation.

In total, groups bought a total of 250,000 tokens (about $30 million) during this spike in the index over the past week. Given the timing, these holders likely have a role to play in the recent price rise.

The metric can now be monitored in the coming days, as a continuation of its upward trend could lead to another bullish result for Litecoin. On the other hand, a decline may be a bearish signal.

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