Litecoin (LTC) Price Skyrockets by 19%, Here's What On-Chain Data Says

Litecoin (CRYPTO: LTC) has observed a sharp increase of over 19% in the past day. Here’s what on-chain data says could be behind the rally.

What Happened: Litecoin has shown resilience amid the broader market sell-off, with the cryptocurrency trading at a 19.18% premium over the past 24 hours. The coin’s price breached the $120 mark during the day.

Among the top digital assets by market capitalization, only XRP (CRYPTO: XRP) and Hedera (CRYPTO: HBAR) showed comparable returns to Litecoin over the last 24 hours. In terms of weekly profits, however, LTC still lags behind many coins with an overall uplift of just 16%.

As for what could be providing the fuel for the rally, perhaps behavior of the key investors of the cryptocurrency could provide some answers.

LTC Sharks & Whales Have Been Buying Recently: In a new post on Medium, the on-chain analytics firm Santiment has discussed about the latest trend in the Supply Distribution of the Litecoin sharks and whales.

The “Supply Distribution” here refers to an indicator that keeps track of the total amount of LTC that a given wallet group is holding right now.

Addresses or investors are divided into these cohorts based on the number of coins that they are carrying in their balance. The 1 to 10 coins group, for instance, contains all the wallets holding between and 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 as 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 who would qualify for these groups would be the sizeable ones.

As the influence of any investor in the market goes up the more coins that they hold, the sharks and whales can be worth keeping an eye on since their movements may end up reflecting on the cryptocurrency.

Now, here is the chart shared by the analytics firm that shows the trend in the Supply Distribution of the Litecoin sharks and whales over the last few months:

As displayed in the above graph, the Litecoin sharks and whales have seen their total supply go up recently, which suggests that these large investors have been participating in net accumulation.

In all, the groups have bought a total of 250,000 tokens (around $30 million) during this surge in the indicator over the last week. Given the timing, it’s probable that these holders have had a part to play in the latest price rally.

The metric could now be to monitor in the coming days, as a continuation of the uptrend in it may spell a further bullish outcome for Litecoin. A decline, on the other hand, could be a bearish signal.