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On-chain data shows a Litecoin whale has made a huge deposit to the cryptocurrency exchange Binance in the past day, a sign that could be bearish for LTC’s price. Binance Has Just Received A Massive Litecoin Inflow
According to data from the cryptocurrency transaction tracker service Whale Alert, a large move has been spotted on the Litecoin network during the last 24 hours.
The transfer in question involved the shifting of 500,000 LTC across the network. At the time that the chain executed the transaction, this stack was worth around $51.3 million. Given the large scale associated with the move, it’s likely that a whale entity was responsible for it. Related Reading Bitcoin’s Next Stop: $75,500? Analyst Reveals Historical ‘Magnet’ Level 15 hours ago
Whales are the largest of investors on the network, who can carry some degree of influence in the market due to their ability to make large transactions like this latest one.
As such, the behavior of these humongous holders can often be worth keeping an eye on, as even if it may not always end up impacting the LTC price, it can still tell us about what the sentiment is like among this important cohort.
Generally, though, it can be hard to say for certain what the whales are doing from their transaction activity alone, considering the anonymous nature of the blockchain. Nonetheless, sometimes, one of the wallets involved in the transaction can be connected to a central entity, which can provide room for speculation.
The latest Litecoin move is fortunately of this type. Here are the details of the addresses involved in the transfer: Looks like the transfer only required a fee of 0.000012 LTC to go through on the blockchain | Source:Whale Alert
As is visible above, the whale made the Litecoin transaction from a few unknown wallets. Such addresses are those that aren’t known to be affiliated with any centralized platform, so they can be assumed to be personal, self-custodial wallets of the investor.
The destination of the transaction was a wallet attached to Binance, an exchange. Moves of this type, where coins go from personal addresses to the custody of an exchange, are known as exchange inflows. Related Reading Solana (SOL) Crashes 15% After Massive Profit-Taking Spike 21 hours ago
Usually, investors deposit their tokens to these platforms when they want to use one of the services that they require, which can include selling. As such, exchange inflows can sometimes have a bearish impact on the asset’s price.
It’s unknown, though, whether the whale truly intended to sell with the latest exchange inflow or not. In the scenario that the investor did plan for it, then it could spell trouble for Litecoin, considering the scale of the move and the fact that its price has already registered a considerable drawdown during the past week. LTC Price
Litecoin has recently plummeted alongside the rest of the cryptocurrency sector, which has brought its price down to $104. The price of the coin still seems to be trading around its lows | Source: LTCUSDT on TradingView Featured image from Dall-E, whale-alert.io, chart from TradingView.com