Litecoin has seen a sharp increase of over 19% in the past day. Here’s what could be behind the rally, according to on-chain data.
Litecoin has outperformed the market with a strong increase in the past 24 hours
The past day has seen a recovery in the cryptocurrency sector as a whole, but Litecoin in particular stood out with its impressive rally of over 19%, pushing its price above $120.
Below is a chart showing what the coin’s recent performance has looked like.
Of the top digital assets by market capitalization, only XRP (XRP) and Hedera (HBAR) have shown comparable returns to Litecoin over the past 24 hours. However, in terms of weekly gains, LTC still lags behind many coins, with an overall increase of only 16%.
As for what could be fueling the rally, the behavior of the cryptocurrency’s top investors may provide some answers.
LTC sharks and whales have recently made purchases
In a new after at The “Supply Distribution” here refers to an indicator that tracks the total amount of LTC that a particular wallet group currently holds.
Addresses or investors are divided into these cohorts based on the number of coins they have on their balance. For example, the 1 to 10 coins group contains all wallets that contain 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 can be defined from 10,000 LTC to infinity. The lower end of the range equates to about $120,000 at the current exchange rate, so the only holders who would qualify for these groups would be the large ones.
As each investor’s influence on the market increases with the more coins he owns, the sharks and whales could be worth keeping an eye on as their movements could ultimately be a reflection of the cryptocurrency.
Here is the graph shared by the analytics firm showing the trend in the supply distribution of the Litecoin sharks and whales over the past few months:
As shown in the chart above, the Litecoin sharks and whales have seen their total supply rise recently, indicating that these large investors have participated in the net accumulation.
In total, the groups purchased a total of 250,000 tokens (approximately $30 million) during this rise in the indicator over the past week. Given the timing, it is likely that these holders played a role in the latest price rally.
This metric could now be something to watch in the coming days as a continuation of the uptrend in it could mean a further bullish outcome for Litecoin. A decline, on the other hand, could be a bearish signal.
Credit : www.newsbtc.com
