Litecoin Whales Deposit Large Amounts to Exchanges, Is It a Bearish Signal? cryptoforbs

Data indicates that Litecoin whales have deposited a large amount of assets onto exchanges over the past day, a potentially bearish sign for LTC.

Litecoin whales achieved large exchange inflows within 24 hours

According to data from the cryptocurrency transaction tracking service Whale alertSeveral large transfers have been made on the LTC blockchain over the past day.

In total, there were four such transactions, the largest of which involved the movement of 500,000 LTC (about $46 million at the time of the transfer). While the other three all saw the same number of tokens moving on the network: 78,760 LTC (the USD price fluctuated between each of these transactions, but on average, the stakes were worth $7.2 million at the time of the move).

Since all these transactions are so large, whale entities are likely behind them. Whales are generally considered market influencers, as they hold very large amounts of money in their wallets. Therefore, its movements are usually something to look out for, as they may precede fluctuations in the price.

Of course, how the price is affected by these investors’ huge transfers depends on what exactly they want to achieve through said transactions.

Here are some additional details regarding today’s largest transfers, which may help shed some light on the context surrounding them:

Looks like this LTC transfer required a negligible fee to go through | Source: Whale Alert

As you can see above, the sending address in the case of this Litecoin transfer was an unknown wallet, meaning it was not linked to any known centralized platform. These addresses usually serve as personal wallets for investors.

On the other hand, the receiving address was connected to a central exchange: the cryptocurrency exchange Binance. Transfers like this where coins move from self-custodial wallets to exchanges are called “exchange flows.”

One of the main reasons coin holders deposit their coins on exchanges is usually for selling-related purposes, so exchange inflows can have bearish effects on the price.

It is possible that the whale here also made this deposit with a similar intention. Of course, if this is indeed the case, the price may feel obvious negative effects from it, taking into account the size of the transaction.

As for the other three transactions that were all of the same size, two of these transfers were inflows similar to this, while the rest were outflows.

Two of these transfers (both incoming flows) share the same sending and receiving addresses, making it likely that the same whale is behind the deposits.

The outflow receiving address does not match any of the transactions from today, so it is unknown if it is related to them. However, it involves the same exact number of coins as the two inflows, so it raises suspicions that the same whale entity may have been behind it after all.

In any case, one fact remains: there were a total net inflows of $53.2 million in the last 24 hours, which could serve as a source of significant selling pressure in the cryptocurrency market.

Litecoin price

At the time of writing, Litecoin is trading at around $91, down 6% in the past week.

LTC has slipped down recently | Source: LTCUSD on TradingView