Data shows that Litecoin whales have deposited a large amount of the asset to exchanges during the past day, a sign that may be bearish for LTC.
Litecoin Whales Have Made Significant Exchange Inflows In 24 Hours
According to data from the cryptocurrency transaction tracker service Whale Alert, several large transfers have taken place on the LTC blockchain during the past day.
In total, there have been four such transactions, with the largest of them involving the movement of 500,000 LTC (around $46 million at the time the transfer went through). While the other three interestingly 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 stacks were worth $7.2 million at the time of movement).
As all these transactions are so large, it’s possible that whale entities were behind them. The whales are generally influential beings in the market, as they hold very large amounts in their wallets. Thus, their movements are usually something to look out for, as they may precede volatility in the price.
Naturally, how the price may be influenced by these humongous investors’ transfers depends on what exactly they wanted to achieve with said transactions.
Here are some additional details regarding the largest of today’s transfers, which may help shed some light on the context surrounding it:
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 that it was unattached to any known centralized platform. Such addresses are usually investors’ personal wallets.
The receiving address, on the other hand, was connected to a centralized platform: the cryptocurrency exchange Binance. Transfers like this where coins move from self-custodial wallets to exchanges are called “exchange inflows.”
Usually, one of the major reasons why holders may deposit their coins to exchanges is for selling-related purposes, so exchange inflows can have bearish effects on the price.
It’s possible that the whale here also made this deposit with a similar intention. Naturally, if it’s truly the case, the price could feel visible negative effects from it, considering the scale of the transaction.
As for the other three transactions that were all of the exact same scale, two of these transfers were inflows similar to this one, while the remaining one was an outflow.
Two of these transfers (both inflows) shared the same sending and receiving addresses, making it likely that the same whale might have been behind the deposits.
The outflow’s receiving address doesn’t match any of the transactions from today, so it’s unknown if it’s related to them. However, it involves the exact same number of coins as the two inflows, so it raises suspicion that the same whale entity may have been behind it after all.
In any case, one reality continues to stand: there were total net inflows of $53.2 million in the last 24 hours, which can act as a source of significant selling pressure in the market for the cryptocurrency.
LTC Price
At the time of writing, Litecoin is trading around $91, down 6% in the last week.
LTC has slipped down recently | Source: LTCUSD on TradingView
Featured image from Kanchanara on Unsplash.com, chart from TradingView.com
